During a 3 day uptrend, WTI crude gained a total of $3.34, or 3%. Bucking the trend and turning lower, after closing at $89.87 yesterday, West Texas crude opened today at $89.87, to be greeted by bearish sentiment that overshadowing today's price action. Irrespective of the bearish mood, West Texas crude retains a distinct $88.63 to $90.12 daily range.
Initial Jobless Claims data from United States will be released today at 12:30 UTC with analysts expecting a decline to 220,000. Potentially significant price fluctuations in US crude oil are expected to follow.
Highly important Crude Oil Inventories data from United States beat analyst expectations of 367,000 with a reading of -3.12 million.
Meanwhile, United States Interest Rate came out at four, while a consensus of analysts was expecting four. United States ADP Nonfarm Employment Change (Oct) released yesterday at 12:15 UTC with a figure of 239,000, while the previous figure was 192,000.
Crude Oil is currently flirting with an active Fibonacci support level around $89.47. WTI crude oil's upper Bollinger Band® is at $92.25 which indicates a further downward move may follow. In contrast, WTI crude could begin to recover as it approaches significant support, now 76 cents away from $88.36. Dipping below could be an indication that further losses are ahead.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts US crude oil to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the West Texas crude is expected to attract significant bearish sentiment in the coming days.
In the meantime, negative performances are also seen in other Energy as Natural Gas is trading around $6 (down 26.8 cents). After ending yesterday's session at $96.16, Brent Crude Oil lost $1.4 and is trading around $94.76.
Looking ahead, ongoing depreciation may be prolonged as United States Non Farm Payrolls projected to decline to 200,000 while previous data was 263,000; data will be released tomorrow at 12:30 UTC. United States Unemployment Rate projected to come out at 3.6 — worse than previous data of 3.5; data will be released tomorrow at 12:30 UTC.
Furthermore, United States ISM Non-Manufacturing PMI (Oct) will be released today at 14:00 UTC.
Approximately 7 months ago, WTI crude oil reached a significant high of $124.77 but has struggled to hold onto its gains and declined 27.97% since then.