Oil: WTI Technical Outlook
Notwithstanding the outcome of the debt ceiling agreement deal between the White House and congressional Republicans, last week’s action in WTI indicates a pause in bullish momentum before the U.S. crude benchmark can charge higher, said Sunil Kumar Dixit, chief technical strategist at SKCharting.com.
“WTI should reach the weekly Middle Bollinger Band of $75.90 if it recaptures the momentum it left off earlier this week,” Dixit said. “Momentum accumulation from support areas is very likely to resume the uptrend, targeting a retest of $73.80 and a swing higher to $74.70, followed by $75.90.”
For any reason, if oil turns lower, expect a move back towards $70 support, with a view of testing $68, Dixit added.
