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WTI Crude Oil Gains 2% As US Data Stave off Recession Fears

The WTI crude oil futures asset has posted gains of up to 2% on the last trading day of the week, as upbeat retail sales and manufacturing data have helped to improve the risk sentiment among traders and stave off fears of an impending recession. WTI crude oil is presently trading above the $55 handle, and the asset is currently challenging the immediate resistance at the R1 pivot price of $55.39.  Upside limitations to the bullish momentum will come from the EIA report on Wednesday which showed a greater than expected build-up of crude oil stockpiles, as well as concerns over oil demand amid the continued trade impasse between the US and China.

This Friday, the only key US data that may impact oil prices are the Oil Rigs Count report as well as the US Consumer Sentiment Index report. These reports are expected to have a moderate impact on prices.

Technical Plays for WTI Crude Oil

WTI crude oil is currently trading at $55.39, directly testing the R1 pivot. As per the 1 hour chart, the price action candles are being supported by the rising trendline, which is helping to push price against the R1 pivot resistance to form a short term ascending triangle. If the price action is able to break the $55.39 level, the next resistance levels in line will be the $56.12 and $56.94 levels in the near term. Failure to break the R1 pivot will lead to a retest of the $54.57 support level as well as the $53.84 price level below it.

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