WTI trades with modest gains below $79.00 mark, close to over one-month low set on Friday
The post WTI trades with modest gains below $79.00 mark, close to over one-month low set on Friday appeared on BitcoinEthereumNews.com.
WTI attracts some buyers on Monday amid the US politics-inspired modest USD downtick. Geopolitical risks also lend support to Oil prices, though China’s economic woes cap gains. Friday’s breakdown and close below the 50-day SMA warrants caution for bullish traders. West Texas Intermediate (WTI) US crude Oil prices kick off the new week on a positive note and reverse a part of Friday’s heavy losses to the $78.50-$78.45 region, over a one-month trough. The commodity currently trades around the $78.85 region, up nearly 0.50% for the day, though lacks strong follow-through buying. US President Joe Biden announced his exit from the presidential race on Sunday, prompting investors to unwind trades betting on a Trump victory. This comes on top of growing acceptance that the Federal Reserve (Fed) will begin its rate-cutting cycle in September and caps the recent US Dollar (USD) recovery from a multi-month low touched last week. This, in turn, is seen lending some support to the USD-denominated commodities, including Crude Oil prices. Apart from this, concerns about supply chain disruption due to the protracted Russia-Ukraine war and the ongoing conflicts in the Middle East further act as a tailwind for the black liquid. Meanwhile, the initial market reaction to the US political development, however, turns out to be limited, which is evident from a modest USD bounce from the daily low. This, along with China’s economic woes, should keep a lid on any meaningful upside for Crude Oil prices. Even from a technical perspective, Friday’s close below the 50-day Simple Moving Average (SMA) could be seen as a fresh trigger for bearish traders. Moreover, oscillators on the daily chart have just started gaining negative traction and suggest that the path of least resistance for the commodity is to the downside. Hence, any subsequent move up could be…
Filed under: News - @ July 22, 2024 5:20 am