The West Texas Intermediate oil bears take another swipe at the bullish support
The West Texas Intermediate (WTI) crude oil prices took another downside challenge Wednesday; however, the $76.90-95 support held limited losses as the bulls once again stepped back into the market and defended this region.
In economic data, U.S. crude oil stocks soared last week by 16.3 million barrels to 471.4 million barrels, the highest level since June 2021, the Energy Information Administration (EIA) said.
Helping to support prices was the International Energy Agency's (IEA) prediction that oil demand will rise by 2 million barrels per day (bpd) in 2023, up 100,000 bpd from last month's forecast to a record 101.9 million bpd, with China making up 900,000 bpd of the increase.
The IEA said China would account for almost half of 2023 oil demand growth after relaxing its COVID-19 curbs.
The U.S. Dollar Index, which typically trades inversely with oil, rallied to a 6-week high at 103.55.
Based on the technical assessment, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator holds a positive bias as it rebounded off the 50-midway point.
The Moving Average Convergence Divergence (MACD) oscillator holds a weak positive bias, and the ADX (trend) indicator supports a ranging market.
The overnight rejection at $76.90-95 still appears vulnerable and, if breached, views the region of $75.60-80, while the near-term cap is at $82.00-45.
Daily Chart West Texas Intermediate (WTI)
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