West Texas Intermediate (WTI) oil prices finished mixed on Tuesday after the up challenge ended the New York session posting a ‘Long-Legged Doji.
After a mixed finish in the previous session, concerns linger that rising coal and natural gas prices in China, India and Europe will stoke inflation and slow global growth, which could reduce oil demand.
A stronger U.S. dollar may also weigh on oil prices, as it makes oil more expensive for those holding other currencies.
Market participants are also waiting on the update of the U.S. oil inventory data, which was delayed by a day following the Columbus Day holiday on Monday.
Data from the American Petroleum Institute, an industry group, is due later on Wednesday and the U.S. Energy Information Administration on Thursday.
Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator supports bearish divergence as the indicator eases lower away from the overbought zone while prices attempt to push higher.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains a positive signal.
Although the view is neutral, a close under $78.60-70 should seal the bearish fate towards the $74.60-$75.10 region.