Despite an early-week upswing, oil prices have struggled to extend gains and remain bounded within a familiar range. Saudi Arabia announced extension of its voluntary output cut. Russia and Algeria offered to trim their August output and exports. But these decisions are more seen as a sign affirming a waning optimism in demand growth.
Technically, outlook in WTI crude oil is rather mixed for now. Repeated rejection by 55 D EMA is retaining bearishness. Yet there is no clear sign of extended selling.
Indeed, recent price actions could be interpreted as a triangle pattern that started in 74.74. If that’s true, there is prospect of another bounce to resume the rebound from 63.67. Break of 72.57 resistance will solidify this case and push WTI through 74.74 resistance. Yet, upside would likely be capped by 100% projection of 63.67 to 74.74 from 66.94 at 78.01.
On the other hand, break of 66.94 support could prompt deeper selloff back to retest 63.67 low.
