Crude Oil Breaks Below Triple Bottom Support – What’s Next?
Arslan Butt • 1 min read
Today in the early Asian session, WTI crude oil prices instantly rose because the OPEC and its allies decided to meet in order to study Asia’s coronavirus’s impact on oil demand. Professionals from OPEC+ will meet at the cartel’s Vienna headquarters later in the day to study the disease’s impact, as estimates suggest that fuel consumption in China, the world’s biggest oil importer, has fallen by about 3 million barrels a day, or 20% of total consumption.
Officials from OPEC+ are thinking of scheduling an emergency ministerial meeting later this month in order to consider new production cuts, according to the report.
On the other hand, WTI Oil prices dropped to their lowest level in the previous session because China’s coronavirus crisis entered its second month, threatening to drain demand for China further. The total death losses have increased to 425, and the number of confirmed cases has risen to more than 20,000 due to coronavirus. However, Asian equities and other risky assets recovered today, with Chinese stocks gaining more than 1% after closing 8.7% lower on Monday.
Daily Support and Resistance
Pivot Point 50.64
WTI crude oil prices are holding below the triple bottom area of 52.15, which is now likely likely to work as a resistance. Closing of bearish candles below 52.15 is likely to drive bearish bias in crude oil, and it may lead prices towards 50 and 48.65. Let’s look for selling trades below 52 today. Good luck!