West Texas Intermediate (WTI) rebounded as geopolitical tensions eased
West Texas Intermediate (WTI) oil prices saw a slight rebound on Monday as geopolitical tensions eased, though a ceasefire agreement between Hamas and Israel remained elusive.
Last week, WTI prices experienced their sharpest weekly decline in three months, dropping over 6%, amid concerns over weak U.S. jobs data and speculation about the Federal Reserve's interest rate decisions.
The possibility of rate cuts gained momentum following disappointing April jobs numbers, with the U.S. economy adding 175,000 jobs, falling short of the expected 250,000.
With limited economic data forthcoming, traders will closely monitor statements from Federal Reserve officials.
Technical indicators suggest caution, with the Relative Strength Index (RSI) signalling negativity but moving away from oversold territory, the Moving Average Convergence Divergence (MACD) indicating negativity, and the Average Directional Index (ADX) supporting a bearish trend.
Breaking below the key support level at $78.55-85 strengthens the bearish bias towards $75.50-60, although oversold conditions may introduce volatility.
Interim resistance at $80.25-45 presents a challenge, necessitating further evaluation.
Daily Chart West Texas Intermediate (WTI)
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