West Texas Intermediate reignited the bullish flame and crushed the $85.40-65 resistance
The West Texas Intermediate (WTI), the New York-traded crude oil benchmark, kicks into gear on Thursday, extending its rally by more than 3% from the previous session, boosted by record U.S. crude exports.
Meanwhile, the weaker U.S. dollar now hits a one-month low at 109.37.
According to weekly government data on Wednesday, U.S. crude stocks rose 2.6 million barrels last week, while crude exports rose to 5.1 million barrels daily, the most ever.
The US dollar retreat has extended since the decline started Friday from 113.80 to 109.37 low Thursday as traders grow more confident that the Fed will dial down to a more modest increase of 0.50 percentage points in December.
Based on the technical assessment, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator is positive. The Moving Average Convergence Divergence (MACD) holds a weak positive signal. The ADX indicator supports a ranging market.
With the clearance of $85.40-65, the market has reached the $88.25-55 objective.
However, a New York close above here would give scope to $92.15-55.
Reassess from there. Viewing the downside, the support is assessed from $86.15-35.
Daily Chart of West Texas Intermediate (WTI)
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