Prices for WTI Crude Oil show a fairly active corrective growth, recovering from a sharp decline in the middle of the week. The instrument is supported by corrective sentiment in the US currency, which intensified after yesterday's publication of October inflation statistics in the US.
The report reflected a stronger slowdown in consumer prices than expected: the annual rate corrected from 8.2% to 7.7% with the forecast of 8.0%, increasing the likelihood of a 50 basis point hike in the US Fed interest rate in December, which could also lead to a more measured policy by the regulator in oreder to prevent destabilization in the labor market. US markets are closed today due to the Veterans Day, so investor activity is likely to remain subdued.
The asset quotes are still under moderate pressure from news from China, the world's largest oil importer. The manufacturing center Guangzhou records a new outbreak of coronavirus, and against this background, the authorities initiated a total testing of citizens for the presence of infection. In Beijing, for instance, the figures hit the highest levels in the past five months. This reinforces investors' fears about a decrease in demand for "black gold". In addition, traders are reviewing reports that the Chinese authorities will continue to adhere to a "zero tolerance" policy regarding COVID-19, despite the fact that a possible change in the government's position was previously noted. Investors appreciate the sharp drop in consumer inflation indices for October, which testified to the slowdown in the Chinese economy.
Bollinger Bands in D1 chart demonstrate multidirectional dynamics. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD is trying to resume its growth, but at the moment it keeps the same sell signal (the histogram is below the signal line). Stochastic is showing similar dynamics, retreating from its lows, indicating the risks of the oversold instrument in the ultra-short term.
Resistance levels: 88.52, 90.00, 92.58, 94.00. | Support levels: 87.00, 85.00, 83.00, 81.00.