WTI Crude Oil Double Bottom Support – Brace for a Breakout Setup
The market’s risk-tone remains heavy with shares in Asia and the US stocks registering losses on the day while the 10-year US Treasury yields seesaw around 0.65% by press time. On the other hand, the strong risk-off market sentiment strengthened the Japanese yen’s safe-haven demand and keeps the pair limited; in fact, the strong JPY turned out to be one of the key factors that kept the barrier on further gains in the pair.
In the meantime, the Japanese Prime Minister Shinzo Abe’s decision to declare a nationwide state of emergency, which will last up to a month, did little to provide any meaningful impetus, although it might help limit the downside in the pair.
Looking forward, market traders now look forward to the US economic docket and keep their eyes on the release of weekly jobless claims, which might influence the USD price dynamics and produce some meaningful trading opportunities during the day ahead.
Daily Support and Resistance
S1 22.02
S2 24.59
S3 25.69
Pivot Point 27.17
R1 28.27
R2 29.75
R3 32.32
The technical side of crude oil remains mostly the same as it may find an immediate resistance around 23.66 area, and closing of candles below this may drive selling bias until 19.20. A bullish breakout of 23.66 can lead WTI prices until 28, while the bearish breakout of the double bottom support level of the 19.20 level can extend selling bias until the next support level of 17.53. We may not see any further trend until this particular range gets violated. Odds of bearish breakout remain high today.
Good luck!
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