The Previous Support Should Turn Into Resistance for Crude Oil Now - Forex News by FX Leaders
Crude Oil is heading for $10 now and probably lower

The Previous Support Should Turn Into Resistance for Crude Oil Now

Posted Tuesday, April 21, 2020 by
Skerdian Meta • 1 min read

Crude Oil has turned bearish again. Oil crashed down in March as panic set in, following the coronavirus outbreak in Europe and the Oil war between Saudi Arabia and Russia, but as OPEC+ decided to meet and cut production by 9.7 million barrels/day, Crude Oil rallied nearly $10 higher.

Saudi Arabia didn’t stick to the OPEC+ agreement and is continuing to flood Asian markets with cheap Oil under the rug, which is not that secret after all. On top of that, the lockdown due to coronavirus continues, which is keeping risk sentiment subdued and risk assets such as Oil subdued.

US WTI crude broke below $20 for the second time since late March, so this time it became apparent that the break was for real. No buying pressure whatsoever, while US Crude Oil futures fell below $0 per barrel, which is the worst level since the stock exchange open in 1983.

Yesterday Crude Oil slipped to $16, so the downside doesn’t seem to end. Now, the previous support at $19 and at $20 as well will turn into resistance if buyers return at some point, so I’m thinking about going short there on a pullback higher. Although, we will follow to see what goes on with OPEC and coronavirus when the pullback comes.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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