Crude Oil’s Tweezer Top in Play – COVID-19 Continues to Weigh - Forex News by FX Leaders

Crude Oil’s Tweezer Top in Play – COVID-19 Continues to Weigh

Posted Wednesday, April 8, 2020 by
Arslan Butt • 1 min read

WTI crude oil prices were flashing green and rose 4.5% to $25.00 from sharp losses during the previous session mainly due to multiple positive clues from the US. The strong expectations of further stimulus also keep the market stable. It should be noted the crude oil earlier ignored a rise in inventory figures from the American Petroleum Institute (API) and the risk-off market sentiment. Crude oil prices are currently trading at 24.47 and consolidating in the range between 24.20 and 25.28. The US Crude Oil WTI futures recovered from their loss of 3.57% and jumped 5.12% to $24.84.

Earlier, the prices of crude oil dropped overnight after the API estimated a massive build of 11.9 million barrels in US crude oil inventories for the week ending April 3. Whereas, investors are still concerned about an oversupply against falling demand as they compared the estimate to analyst forecasts of a 9.3 million-barrel build. It remains to be seen what will happen in OPEC +’s online meeting on Thursday to discuss and attempt to resolve the ongoing price war between Russia and Saudi Arabia.


WTI Crude Oil – Daily Technical Levels
Support Resistance
26.07 29.14
24.82 30.96
21.74 34.04
Pivot Point 27.89

Technically, WTI prices are trading at 24.22, facing immediate support around 23.61 and resistance at 25.30. So far, oil prices are stuck within this range, and OPEC meeting tomorrow will be worth watching as it may drive breakout in the market. The MACD has crossed below 0, which is suggesting the chances of selling bias in the oil prices. Hence, if the oil prices break below 23.61 level, we may see more selling until the next support area of 21.35 and 19.40. Let’s wait for a breakout before making the next move.

Good luck!

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