Ultima Markets

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTI for 19^th April 2024. 

Key Takeaways 

• OPEC monthly report: The report maintains its growth forecast of global oil demand for 2024 and 2025 at 2.25 million barrels per day and 1.85 million barrels per day respectively. On the other hand, oil futures surged to their highest level since October following rising tension in the Middle East and Eastern Europe, over the prospect of tighter supplies for the coming months.  
• Demand forecasts are all raised: The US Energy Information Administration (EIA) raised its global demand forecast, which is in line with the forecast given by the International Energy Agency (IEA). The forecast was made under the circumstances of increasing optimism for demand growth throughout the second half of 2024.  
• Geographic conflicts: Escalation of conflict between Iran and Israel may assert profound impact on global oil supply. As Israel is expected to retaliate, market is putting expectation for possible disruption in the global oil supply. 

Technical Analysis 

Daily Chart Insights 

• Stochastic Oscillator: The indicator formed a bearish signal while threading towards the downside yesterday. This suggests possible extension of weakness in the short term.  
• Upward channel line: Following our previous analysis, we hypothesize for further weakness to the 33-MA line. With the current price action near the mentioned moving average line, we will need to dial into lower timeframes for further clarification on its closure below. A confirmation will push oil price lower, towards the bottom level of the channel, near the 250-MA line (dotted). 

4-hour Chart Analysis 

• Stochastic oscillator: The indicator shows bullish signal formation at oversold region, suggesting the end of oil price decline. However, given that oil price has yet to return above the neckline, it is possible to falter before reaching the threshold.  
• Support and resistance of moving average: The 250-MA line (dotted) remains as a key focus level for its trend in mid to long-term. During Asian trading session, oil price began to rebound, closing above the 33-MA line (green) which would give possible signal to upside momentum. Continuation in such momentum will further justify its upside thereafter.  

Pivot Indicator 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 82.80, 
• Bullish Scenario: Bullish sentiment prevails above 82.80, first target 83.50, second target 84.30; 
• Bearish Outlook: In a bearish scenario below 82.80, first target 81.05, second target 80.50. 

Conclusion 

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Disclaimer   

Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.