WTI Crude Bulls Eye Long-Term Fibonacci Level at $92.38
U.S. West Texas Intermediate crude oil futures ended higher on Monday, boosted by a supply shortage and geopolitical concerns over Eastern Europe and the Middle East that could lead to market disruptions. supply. Additionally, traders are positioning themselves ahead of this week’s OPEC+ meeting.
On Monday, March WTI Crude Oil settled at $88.15, up $1.33 or +1.53%. The United States Oil Fund ETF (USO) ended at $62.46, up $0.49 or +0.79%.
Market analysts and Reuters sources widely expect OPEC+ to maintain its policy of gradually increasing production at its meeting on Wednesday. OPEC and its allies have increased production by 400,000 barrels a day every month since August.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade at $88.84 will signal a resumption of the uptrend. A move to $81.90 will alter the main downtrend.
The minor range is $81.90 to $88.84. Its 50% level at $85.37 is the closest support.
The next support is a pair of 50% levels at $83.09 and $81.43. The latter is a potential trigger point for downward acceleration.
The direction of March WTI crude oil futures early Tuesday will likely be determined by how traders react at $87.64.
A sustained move above $87.64 will indicate the presence of buyers. If this move creates enough bullish momentum, look for a test of last week’s high at $88.84. The removal of this level could generate the bullish momentum needed to challenge the long-term Fibonacci level at $92.38.
A sustained move below $87.64 will signal the presence of sellers. If this move generates enough downward momentum, expect the move to eventually extend into a pivot at $85.37.
Buyers could participate in the first test of $85.37, but if it fails, expect selling to eventually extend into a second pivot at $83.09, followed by a main low at 81.90 $ and another pivot at $81.43. Look for the start of a steep decline if the last pivot fails as support.