The XTIUSD price analysis shows that there is bullish momentum building towards a key resistance area. If a bearish scenario occurs, selling below 83.63 with certain target prices and stop-loss levels is recommended. On the other hand, a bullish scenario after a pullback to the demand zone suggests waiting for a decline towards 82.00 and the formation of a bullish pattern.
Fundamentally, there are expectations of increased oil demand in the U.S. WTI crude oil prices are on the rise due to higher fuel demand during the summer travel season. The American Automobile Association projects a significant increase in travel, leading to higher fuel consumption and pushing oil prices higher.
From a technical analysis perspective, the WTIUSD chart shows specific supply and demand zones. Crude oil prices have already reached a supply zone at 83.63, and a pullback towards the day’s opening near the POC at 82.94 is expected. Bulls may reactivate from this level for a rally towards 84.16 or higher.
In the event of stronger selling pressure breaking the daily demand zone around 82.94, a more extensive correction towards lower levels is expected. However, the bullish scenario after the correction remains valid as long as the support of the uptrend at 80.60 is not decisively broken.
It is essential to understand the concept of the Point of Control (POC) in trading. The POC represents the level or zone where the highest concentration of volume occurred. Depending on the previous price movements, the POC can act as a support or resistance area.
In conclusion, the XTIUSD price analysis suggests a potential bullish momentum towards a key resistance area. Traders should be cautious of specific levels and patterns to make informed trading decisions. Additional research and analysis can help traders navigate the volatile oil market effectively.