WTI Crude Oil Set for Retracement – EIA Report Continues to Weigh
WTI crude oil prices could hardly show potential for a rebound, as the US Energy Information Administration (EIA) reported that crude oil stockpiles increased by 19.25 million barrels last week, the most significant build on record. US Nymex crude oil futures declined 1.2% to $19.87 a barrel.
There are multiple reasons behind the damaged oil market, not only the supply issue but also the receding demand fears, which have been caused by the coronavirus (COVID-19) crisis. The International Monetary Fund’s (IMF) warned about a global slowdown due to the fresh sharp surge in the coronavirus (COVID-19) deaths, which further fueled the risk-off market mood, and the recently released virus data adds to the broad risk-off mood. At the USD front, the broad-based US dollar strength applies additional pressures on the commodities and could be considered the reason behind oil’s latest declines.
Support Resistance
25.4 30.34
23.55 33.43
18.6 38.37
Pivot Point 28.49
Technically, US Oil prices are trading at $20, right below an immediate resistance level of 20.60. This particular resistance level is extended by the 50 periods EMA and double top pattern. Below this, WTI crude oil can fall until 19/40 and 19.15 while further breakout of 19.15 level can extend selling further until 18.28 level. We should consider taking selling trades below 20.60 level, and buying above this same will be suitable in case it breaks upward. Good luck!
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