WTI Crude Oil Futures (NYMEX: CL) gained 3.27% in Wednesday’s trading session on the back of upbeat sentiment over the possibility that the debt ceiling crisis could be concluded with a good solution. However, the inventory count paints a bearish picture, as the Crude Oil Inventory surged to 5.04M, significantly overlapping expectations of a 0.92M decline in the past week.

The U.S. has shown signs of resilience in April’s data, taking the probability of a Federal Rate hike to over a fifth (25%) from nearly 0% in the prior week. After establishing a new low for the year this month, will the WTI Crude Oil Futures rebound sustain?

Summary

The WTI Crude Oil Futures are firmly in a downtrend, with the price well below its 100-day moving average. However, bearish momentum may have come to an end as bulls swept into the market to take the price away from its bottom, where RSI conditions had pointed to oversold levels. Support and resistance were established at the $63.65 and $76.90 per barrel (BLL) levels, respectively.

Bulls managed to break through the 61.80% Fibonacci retracement Golden Ratio with substantial volume, indicating strong momentum to the upside and potentially an appetite for more. The $76.70 BLL level could materialise if bulls sustain the move higher.

Alternatively, if bears are fixated on the Golden Ratio as a resistance level, a reversal could play out with the $63.65 level potentially coming into play.

Summary

The remainder of the week will likely have traders glued to their trading screens as the U.S. Labour Market Reports and Fed Chair Jerome Powell’s speech are incoming. Traders will likely look to the $63.65 and $76.90 BLL levels as they try to discern if the U.S. economy is healthy enough to support WTI Crude Oil Future prices.

Sources: CME FedWatch Tool, U.S. Energy Information Administration, Reuters, TradingView