Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Market Outlook

Chart of the week – WTI Crude Oil (cash) bullish trend intact as OPEC looms

Chart of the week – WTI Crude Oil (cash) 

WTI Crude Oil (cash) bullish trend intact as OPEC looms

Short-term technical analysis

click to enlarge chart

Time stamped: 27 Jun 2021 at 2:00pm SGT

Source: CMC Markets

  • The oil producer cartel, OPEC and its non-members will meet on 1 July, Thursday to decide on the supply level for its oil production for the month of August and thereafter. In the previous meeting held on 1 June, OPEC+ members have agreed on a larger supply of production of around 2 million barrels per day from May to July. Rumours have started to circulate in the market ahead of the 1 July meeting that the cartel has considered an additional increase of 500,000 barrels per day from August onwards to meet rising demand of oil post Covid-19 pandemic.
  • Despite the expected incoming increase in oil supply per day, the multi-month uptrend of West Texas Crude Oil (cash) is not showing any clear signs of a reversal from a technical analysis perspective.
  • The 4-hour Relative Strength Index (RSI) has continued to push higher above a significant corresponding support at the 52% level and still has room for further potential upside before it reaches an extreme overbought level of 80% seen earlier in January 2021. These observations suggest that short to medium-term upside momentum of price action remains intact.
  • 72.30 key short-term pivotal support (defined by the lower boundary of the short-term ascending channel from 21 May 2021 low & the 50-period moving average) to watch for a potential direct rise towards 75.70/76.10 (also a 10-year high) and a break above 76.10 may open up scope for a further acceleration towards the next resistance at 78.40/79.60 (a cluster of Fibonacci expansion levels).
  • On the flipside, a 4-hour close below 72.30 negates the bearish tone for a corrective decline to retest the recent post Fed FOMC 17 June swing low of 69.80.