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WTI Sideways Range Continues – COVID-19 Pressures

WTI crude oil prices continued their previous recovery rally and rose 3.92% to $24.95 after the American Petroleum Institute (API) reported a decline in the US crude oil stockpiles. WTI crude oil prices are currently trading at 24.66 and consolidate in the range between the 24.21 and 25.22.

American Petroleum Institute (API) reported a surprise draw of 1.247 million barrels in the US crude oil inventory for the week ending March 21, against a forecast for a build of 2.774 million barrels instead. It is worth mentioning that this is a much more significant decrease than last week’s 421,000 barrels drawdown.

WTI crude oil prices also got support from the United States’ fresh moves to control the economic impact of the COVID-19 pandemic. Following two days of failure, the Senate Democrats and Republicans finally showed agreeability on the Trump administration-backed stimulus package plan.

Daily Support and Resistance
S1 20.8
S2 22.79
S3 24.06
Pivot Point 24.79
R1 26.05
R2 26.78
R3 28.77

On the technical front, WTI is facing resistance around 25.92, crossing below the pivot point level of 24.79. Closing of candles below this level is exposing oil prices until 22.79 and the double bottom support level at 27.92. Violation of this double top level may lead WTI crude oil prices towards 21.8. The idea today is to stay bearish below 24.79 with a target of 21.70 and a stop loss of over 25.25.

Good luck!

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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