WTI Price Forecast: Oil remains bullish with downside attempts capped at $63.45
Oil prices retreat as the US-China deal fails to convince investors.
The lack of details on the agreement has been received with a sceptical response.
Technically, WTI Oil maintains its bullish stance while above $63.45.
Oil prices are showing a moderate reversal on Wednesday, as the vague news about the US-China trade deal has been taken with more scepticism than enthusiasm. The broader trend, however, remains positive, with prices standing comfortably above previous highs at the $63.50 area.
The Sino-US trade talks ended late on Tuesday with an alleged agreement to ease restrictions on rare earth’s commerce, bringing their trade relationship to the terms set in the Geneva summit last month. The deal needs to be ratified by the presidents of the US and China.
Technical analysis: Crude prices keep trending higher
The US benchmark WTI’s prices remain heading higher. Tuesday’s reversal from the $65.40 area has been contained above the previous resistance area, at $63.45, which suggests that dips are finding buyers so far. The 4-hour RSI remains in positive territory above 50.
On the upside, the next bullish target is at the $65.30 - $65.60 area where the June 10 high meets the 161.8% Fibonacci extension from mid-May’s correction. Above here, the 261.8% retracement is at $69.10.
On the downside, a bearish reaction below $63.45 (June 2,3,4, and 5 highs) would bring the $62.00 area (June 5 low) to the focus.
WTI 4-Hour Chart
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