Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
WTI US Crude Oil Forecast: Oil Bulls Drive Rally to Fresh Yearly High

WTI US Crude Oil Forecast: Oil Bulls Drive Rally to Fresh Yearly High

Tammy Da Costa, Analyst

WTI – US Crude Oil Price Setup:

Advertisement

WTI – US Crude Oil reached a fresh yearly high after catalyzing off of a combination of a reduction in US Crude inventories and the approval of the larger US Fiscal Stimulus package. An increase in demand for the major commodity provided bulls with renewed optimism, allowing them to push through the critical level at 5204.3, formed by the 76.4% Fibonacci retracement level of the 2020 move.

Oil Forecast
Oil Forecast
Recommended by Tammy Da Costa
Get Your Free Oil Forecast
Get My Guide

WTI – US Crude Oil Monthly Chart

WTI US Crude Oil Monthly Chart

Chart prepared by Tammy Da Costa, IG

Meanwhile, short-term price action remains within the confines of a bullish channel, after bears failed to break below current support, allowing buyers to run with the trend. A break above the upper Bollinger Band, combined with a Commodity Channel Index (CCI) reading of 227, indicates that although the bullish trend has prevailed, prices remain in oversold territory, potentially hindering further gains.

WTI – US Crude Oil Daily Chart

WTI US Crude Oil Daily Chart

Chart prepared by Tammy Da Costa, IG

Understanding the Core Fundamentals of Oil Trading
Understanding the Core Fundamentals of Oil Trading
Recommended by Tammy Da Costa
Learn the Core Fundamentals of Oil Trading
Get My Guide

WTI – US Crude Oil Sentiment

Oil - US Crude Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 3% -3% 2%
Weekly 24% -43% 2%
Learn how to use Sentiment in your trading strategy
Get My Guide

At the time of writing, retail trader data shows 38.10% of traders are net-long with the ratio of traders short to long at 1.62 to 1. The number of traders net-long is 7.44% lower than yesterday and 8.33% lower from last week, while the number of traders net-short is 6.00% lower than yesterday and 28.60% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Oil - US Crude prices may continue to rise.

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Oil - US Crude-bullish contrarian trading bias.

--- Written by Tammy Da Costa, Market Writer for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES