Focus on WTI OIL today – 6th June, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTI OIL for June 6, 2024.

Key Takeaways

• Geopolitics is still a risk: According to Iranian media, Israel launched an airstrike near Syrian City of Aleppo in the early hours of Monday local time, killing an Iranian military adviser. Iran responded that Israel “must pay with blood”, triggering escalation of risk in the Middle East which prompts oil price rise in short-term.
• Sluggish crude oil demand: According to EIA, oil reserve inventory in the US stood at its highest level since the week ending March 31, 2023. At the same time, refined oil inventories recorded its largest rise since the week ending January 5, 2024.

Technical Analysis

Daily Chart Insights

• Stochastic Oscillator：The indicator ventured into the oversold region yesterday, suggesting possibility of forming bullish signal. However, as the fast line has not completed its formation, we will still need to wait for a clearer signal before entering the market.
• Downward channel line: Oil price rebounded yesterday after falling for five consecutive trading days with a bullish engulfing. Nonetheless, it is worth noting that the bullish engulfing pattern appears at the lower edge of the downward channel line, which may be caused by short traders cashing in their profits.
• Rebound target: Oil price broke above the upper boundaries of sideways channel but retraced sharply thereafter. At the time being, its price has rebounded from 38.2% of Fibonacci retracement level, with a strong calling for a possible re-entry into the sideways channel in the near-term.  

1-hour Chart Analysis

• Stochastic oscillator: The indicator’s signal line continues to linger at the overbought region, suggesting possible extension on its upside.
• Rebound strength: Oil price broke the upper boundaries of ascending channel yesterday. Nonetheless, as current bullish bias may be short-lived, there is possibility for its re-entry into the channel if it falters.
• Elliott wave structure: From the 15-minutes chart, the rebound wave A and B has been completed, which suggests oil price may extend into a 3-3-5 pattern of corrective wave. Theoretically, wave C is usually 1.382 times that of wave A. If it extends its rebound, it may advance as much as 1.618 times, which will be near to the 75 psychological level.

Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 72.55,
• Bullish Scenario: Bullish sentiment prevails above 72.55, first target 75.40, second target 76.35;
• Bearish Outlook: In a bearish scenario below 72.55, first target 71.80, second target 71.00.

Conclusion

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