WTI pares back gains below $53 ahead of US drilling data

by

WTI (oil futures on NYMEX) reverses half the Thursday’s recovery rally and surrenders the $53 mark in European session this Friday.

The black gold extended the overnight bounce in Asia and reached as high as $53.36, as the risk sentiment rebounded on the World Health Organization (WHO) confidence in China’s quick response in containing the coronavirus outbreak.

Further, the WHO Director-General also came out against travel and trade restrictions while declaring a global emergency over the spread. The relaxed tone by the body helped improve the market mood.

However, the bulls lacked vigor amid the rapid spreading virus internationally and as markets continue to assess its economic implications. Oil traders remain wary about the virus’s impact on the demand for oil and its products. Thus, keeping the upside attempts in check.

The sentiment around the barrel of WTI also remains weighed down by a bigger-than-expected rise in the US Crude Stocks data, reported by the Energy Information Administration (EIA) on Wednesday. The US crude stocks rose by more than seven times market expectations, gaining 3.5 million barrels in the week to Jan. 24, per EIA data.  

In the day ahead, the coronavirus concerns will continue to drive the market sentiment while the commodity will take cues from the US Baker Hughes Oil Rigs Count data due at 1800 GMT.

WTI Technical levels to consider

WTI

Overview
Today last price 52.62
Today Daily Change -0.20
Today Daily Change % -0.38
Today daily open 52.82

 

Trends
Daily SMA20 57.72
Daily SMA50 58.67
Daily SMA100 57.19
Daily SMA200 57.31

 

Levels
Previous Daily High 53.23
Previous Daily Low 51.71
Previous Weekly High 59.65
Previous Weekly Low 53.86
Previous Monthly High 62.38
Previous Monthly Low 55.41
Daily Fibonacci 38.2% 52.29
Daily Fibonacci 61.8% 52.65
Daily Pivot Point S1 51.95
Daily Pivot Point S2 51.07
Daily Pivot Point S3 50.43
Daily Pivot Point R1 53.46
Daily Pivot Point R2 54.11
Daily Pivot Point R3 54.98