Crude Oil’s Bullish Bias Continues to Dominate the Market – Who’s Up for Buying?
Arslan Butt • 2 min read
WTI crude oil prices dropped after jumping almost 25% in the last session as traders seem cautious about a US-mediated truce between Russia and Saudi Arabia. Notably, oil prices failed to extend their sharp gains and did not cheer US President Donald Trump’s hope for production cuts as coronavirus crisis continues to hit the trading sentiment.
As of writing, WTI crude oil prices are currently trading at 25.64 and consolidating in the range between 23.52 and 25.86. US Crude Oil WTI Futures rose almost 25% in the last session as Trump tweeted that Saudi Arabia and Russia had agreed to a cut of “about 10 million barrels, and maybe much more.”
However, markets seemed more concerned about the fresh fears of coronavirus, as indicated by the Communist Party Secretary of China’s Wuhan region. Moreover, traders did not give any major attention to China’s March Caixin Services PMI that followed the footsteps of recent activity data while rising beyond 26.5 to 43.
As a result, the 10-year US Treasury yields fell below 0.60%, down 3-basis points (bps), whereas the US stock futures also marked losses of near 1.0% by press time. While stocks in Asia also flash negative signals.
Looking forward, oil traders will now keep their eyes on the US President’s meeting with key oil company leaders as well as the economic calendar that carries US ISM Non-Manufacturing PMI, NFP and Baker Huges Oil Rig Counts that will provide fresh directions.
Daily Support and Resistance
Pivot Point 21.65
Technically, crude oil prices have crossed over the resistance level of 24.85, which has opened further room for buying until 28.29 level. Closing of candles below this level may help us capture a selling trade, but at the same time, buying can be taken now over a 24.85 resistance level. The MACD is forming big histograms, which is suggesting odds of more buying in WTI. Good luck!