USDX
101.970

0.09%

XAUUSD
1927.97

0.04%

WTI
79.494

2.06%

EURUSD
1.08671

0.22%

GBPUSD
1.23911

0.11%

USDJPY
129.808

0.30%

USNDAQ100
0.12

1.39%

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WTI: Support Remains, Patiently Waiting for Long Opportunities After Oversold

Commodity
Summary:

Support for oil prices is still in place, and oil prices are currently at the upper price of the U.S. replenishment of SPR stocks. From the odds, it is not advisable to overly chase the shorting, instead, it is appropriate to wait patiently for long opportunities after the market has oversold.

Buy WTI
End Time
CLOSED

72.250

ENTRY PRICE

83.500

TGT PRICE

67.000

SL PRICE

79.494 -1.674 -2.06%

1173

Points

Profit

67.000

SL PRICE

73.423

CLOSING

72.250

ENTRY PRICE

83.500

TGT PRICE

Fundamentals

Russia's crude oil production still reached an eight-month high of 9.87 million barrels per day in November, according to data from a survey of market institutions on Dec. 8, indicating that the country still has plenty of exports to select from. Earlier, Russian Deputy Prime Minister Alexander Novak had said that Russia's oil and gas condensate production reached 488 million tons in 2022 from January to November, up 2.2% YoY.
In addition, Keystone, a major oil pipeline in Canada and the US Gulf Coast, has been shut down because of a crude oil spill. Pipeline operator TC Energy said the spill is located about 20 miles south of Steele City, Nevada, and that the affected area has been isolated and crews are working to contain and recover the spilled oil. The Keystone pipeline system delivers more than 600,000 barrels per day of crude oil.
U.S. Cushing crude stocks are currently at their lowest level since July, while crude oil processing at Midwest refineries is at its highest level in months. With key pipeline closures, crude oil supplies could be very tight.
Overall, the first key factor supporting higher international oil prices is whether Russia is cutting off its supply to the market to protest the G7 oil price cap sanctions. And not just verbally indicate that the price cap is unacceptable. As of Friday, the price of Russian Urals crude oil was around $67 per barrel, and EU countries may demand a cap of $50 per barrel or lower, which would be enough to anger Russian President Vladimir Putin and prompt him to carry out his threat to cut Russian oil production or exports. Currently, oil prices are at the upper price of the U.S. replenishment of SPR stocks, and from the odds, it is not advisable to overly chase the shorting, but rather appropriate to wait patiently for the long opportunities after the market has oversold.

Technical Analysis

From the 1H chart, the momentum on the downside is weakening every time from 1 to 4, while the momentum of the rebound is increasing, which means that the massive take-profits will come out after the first drop in the market. The MACD is also forming a golden cross at lows, which may lead to a rally in the short term.WTI: Support Remains, Patiently Waiting for Long Opportunities After Oversold_1

Trading Recommendations

Trading direction: Long
Entry price: 72.250
Target price: 83.500
Stop loss: 67.000
Support: 72.000/67.000
Resistance: 75.500/83.500
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or signal, or any other product is suitable for you based on your investment objectives and financial situation.

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Focus on

COPPER, WTI, XAUUSD

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