West Texas Intermediate (WTI) crude oil edges up on-demand growth prospects

May 4, 2021 - 2 weeks ago
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West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, is still undetermined as the bulls and bear battle it out.

After Friday’s decline, the bulls managed to recapture the momentum and trimmed some of those losses on Monday, as more U.S. states eased lockdowns, and the European Union sought to attract more travellers, which has offset weakened fuel demand in India as COVID-19 cases soar.

On the data front, IHS Markit data showed U.S. manufacturing activity grew at a record-high speed last month, with April’s Manufacturing Business Activity PMI Index rising to 60.5, matching the forecast.

However, a separate gauge from Institute for Supply Management signalled a slowdown in manufacturing expansion.

For April, the ISM Manufacturing PMI came in at 60.7, compared to the expected 65.0 and March’s level of 64.7.

From a technical perspective, the daily technical set-up of the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator remains buckled as it hovers above the 50-midway point, while the Moving Average Convergence Divergence (MACD) is holding a positive signal.

Viewing the topside, the resistance has risen slightly at $64.70-80, while the support located at $61.80-$62.10 (trendline). Reassess from there.

A close above $64.80 should give the bullish call to $67.00-50.

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