WTI Crude Oil Rose 2.77% – US Agreement & Risk Recovery Sentiment Support

Posted Tuesday, March 24, 2020 by
Arslan Butt • 2 min read

Today in the early Asian session, WTI crude oil prices recovered and gained 2.77% on the daily chart but are still trading below the $25.00. Crude oil got a boost ahead of the European session as the United States gave the possibility of an agreement with Saudi Arabia to support prices. Additionally, the recent risk recovery also gave some support to oil prices.

WTI crude oil prices are currently trading at 24.50 and consolidate in the range between the 23.70 and 24.79. However, traders are keenly awaiting the preliminary figures of the monthly PMI and the weekly inventory figures from the private provider, namely the American Petroleum Institute (API), for taking fresh directions. The US Crude Oil WTI Futures jumped 5.27% to $24.59.

After the Fed’s unlimited QE announcement, US policymakers are pushing in the Senate to pass the Republican-backed package to control the coronavirus (COVID-19) impact. Whereas, US President and Treasury Secretary Steve Mnuchin are giving confidence to the public concerning the estimated $2 trillion bill. As a result, the risk tone seems to recover with the US 10-year treasury yields and Asian stocks rising while COVID-19 numbers from China indicate positive signals.

On the negative side, the numbers from the US, Italy, Russia, and Saudi Arabia, keep warning the fears of the intensifying deadly pandemic. While the recent declines in the US dollar look to support the energy benchmark, investors will keep their eyes on the key activity numbers from the US, the UK, and the Eurozone for fresh impulses. For oil-specific news, the weekly API data, with -0.421 M prior, will be key to watch.

Daily Support and Resistance
S1 18.32
S2 21.12
S3 22.93
Pivot Point 23.92
R1 25.73
R2 26.72
R3 29.52

On the technical front, crude oil prices are facing strong resistance around 25.92, crossing over the pivot point level of 23.92. Closing of candles above this level is exposing oil prices until 26.72 and the double top resistance level at 27.92. Violation of this double top level may lead the WTI crude oil prices towards 29.52. The idea today is to stay bullish over 24.75 with a target of 25.75 and a stop loss of over 23.64.

Good luck!

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