WTI Crude Oil Breaks Over Double Top – COVID-19 Still Weighs
Arslan Butt • 1 min read
WTI crude oil prices were flashing green and trading above the $22.55 handle before reversing below the $22 handles. Oil prices recently got support from rising hopes for a truce between Saudi Arabia and Russia in their ongoing price war. As of writing, WTI crude oil prices are currently trading at 22.00 and consolidating in the range between 20.77 and 22.55.
US Crude Oil WTI Futures surged 3.64% to $21.05, reversing losses in the last session. The United States President Donald Trump said during his press conference on Wednesday that he expected both producers would be able to come to an agreement within the next few days. He suggested that it will not be good for both countries. So, I think they are going to make a deal soon.
On the other hand, the Energy Information Administration (EIA) said overnight that crude inventories rose by 13.8 million barrels last week, a weekly build last seen four years ago. EIA’s report was in sync with the American Petroleum Institute (API)’s Wednesday report of a 10.485-million-barrel build.
Whereas the oil demand continues to decrease mainly due to the number of COVID-19 cases globally which shows no sign of slowing down, and investors are expecting another tough month ahead.
Daily Support and Resistance
Pivot Point 22.29
Technically, WTI prices are trading at 22.40, holding right above an immediate support level of 22. Above this, the next resistance is likely to be found 23 and 24 levels, while the MACD and RSI are also supporting the bullish bias.
Three white soldiers’ patterns on the 4-hour timeframe are favoring the demand for WTI and may help us capture a buying trade today. The idea is to stay bullish over 22 levels today to target 23. Good luck!