Today in the early Asian session, WTI crude oil prices dropped to its lowest level in almost 17 years, mainly due to intensifying coronavirus fears, hitting demand just as supply drops. As of writing, WTI crude prices are currently trading at 26.56 and consolidates in the range between the 26.28 – 27.60. As we know, oil prices have recently recovered from 49-month lows clocked in early Asian session due to losses in the US stock futures.

West Texas Intermediate for April delivery was 2 cents lower at $26.93 a barrel on the New York Mercantile Exchange as of 8:46 am in Singapore. As of now, futures in New York dropped by as much as 2.8% in the early Asian time, hitting as low as $26.20 a barrel, which is the lowest settlement price since May 2003. Oil prices recovered some of their initial losses but remained more than 15% weaker this week in the most volatile trading on record.

Despite organized struggles by global central banks and many government stimulus measures to balance the negative economic impact from the coronavirus pandemic, the fears of an expected global slowdown continued weighing on investors’ confidence.

Daily Support and Resistance
S1 21.2
S2 24.74
S3 25.97
Pivot Point 28.28
R1 29.51
R2 31.82
R3 35.36

Technically, WTI prices have violated the 27.70 support level, and it’s pretty much likely to continue it’s selling bias until 23.85 level. Right now, it’s trading at 25.60. The MACD is forming strong histograms below zero, which is suggesting odds of further selling in the crude oil. For now, let’s look for further selling trades below 26.25 level with a target of 23.50.

Good luck!