Coronavirus Continues to Dent Oil Demand – Quick Trade Plan
Arslan Butt • 1 min read
The WTI crude oil signal played well in our favor as prices collapsed by almost 4% yesterday. The rapid spread of the coronavirus in nations outside China drove investors to focus their attention on the impact on demand for crude.
Demand loss for crude is expected to increase as the travel restrictions could increase if the coronavirus outbreak becomes a global threat and not just for China. The number of coronavirus cases in Italy’s Lombardy region surged to 89 on Sunday from 54, leaving the country with 150 confirmed infections, the highest in Europe, and almost five times that of Germany, even as the total number of virus cases rose past 77,000 in China.
Meanwhile, Iran’s government confirmed 43 cases and eight deaths caused by the coronavirus since last Tuesday, the highest death toll outside of China. The coronavirus has affected almost 77,000 people and affected over 2,500 in China, most of them in Hubei. Besides, the fourth largest city of South Korea, known as Daegu, was increasingly cut off as the number of cases there rose higher.
Daily Support and Resistance
Pivot Point 51.39
The WTI crude oil prices are heading below the support level of 51.39 after violating the upward trendline support level of 52.20. On the lower side, the support can be found around 50.75 and 49.75. Let’s look for a selling trade below 51.39 to target 50.45.