WTI Crude Oil Support Set to Become Resistance – Quick Trade Plan - Forex News by FX Leaders

WTI Crude Oil Support Set to Become Resistance – Quick Trade Plan

Posted Friday, March 20, 2020 by
Arslan Butt • 1 min read

WTI crude oil prices were flashing green and rose 4.17% to $26.99 from an 18-year low, mainly after the US President Donald Trump announced that he was prepared to negotiate in the market. As of writing, oil prices are currently trading at 27.75 and consolidating in the range between 25.35 and 28.48. The US Crude Oil WTI futures rose 4.17% to $26.99 by 11:30 PM ET (03:30 AM GMT).

However, US President Donald Trump not only placed specific measures during a press conference Thursday, but he also did say that he had spoken to many people and that he may negotiate in the Saudi Arabia and Russia price war at a suitable time.

WTI crude oil prices in North America surged by more than 24%, the largest-ever percentage gain, after Trump’s comments. Trump talked about oil markets with Saudi Arabian Crown Prince Mohammed bin Salman during a call on March 9. Moreover, the State Department said that US ambassador to Saudi Arabia John Abizaid talked entirely about oil markets with Saudi energy minister Abdulaziz bin Salman Al Saud three days later.

Daily Support and Resistance
S1 12.71
S2 19
S3 22.28
Pivot Point 25.29
R1 28.57
R2 31.57
R3 37.86

Technically, WTI crude oil is trading at 26.66 after testing the support level of 20.60. Closing of a bullish engulfing candle on the 4-hour chart is driving buying and still suggesting bullish bias in WTI prices. However, the support cum resistance level of 28.02 level is likely to pressure oil prices.

On the upper side, the bullish crossover of 28 can lead WTI prices until 29.85 while below this, selling can be seen until 25.75 and 24.67. Let’s look for buying above 28.10 and selling below the same today. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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