WTI Price Analysis: Steadies around $72.50 after OPEC’s normalizing Oil supply policy-indued losses

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WTI Price Analysis: Steadies around $72.50 after OPEC’s normalizing Oil supply policy-indued losses
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West Texas Intermediate (WTI), futures on NYMEX, find a temporary cushion near $72.50 in Wednesday’s European session.

The Oil price finds support near $72.50 after falling consecutively for five trading session. The OPEC + would pause rollback of production cuts if demand appears to remain relatively weak. WTI shifts into the bearish trajectory after an Inverted Flag breakdown. West Texas Intermediate , futures on NYMEX, find a temporary cushion near $72.50 in Wednesday’s European session.

WTI weakens after a breakdown of the Inverted Flag chart pattern formed on a daily timeframe. The Inverted Flag formation reflects an inventory adjustment process that follows the ongoing trend after the completion, which in this case is down. Declining 20-day Exponential Moving Average near $77.35 suggests that the near-term outlook is vulnerable. The 14-period Relative Strength Index shifts into the bearish range of 20.00-40.00, indicating that momentum has leaned towards the downside.

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