WTI Crude Oil’s Bearish Bias Continues – Quick Trade Plan
Arslan Butt • 1 min read
The US West Texas Intermediate (WTI) crude was down $2.57, or 20%, at $10.21 a barrel. The contract fell by 25% on Monday. Economists stated part of the WTI drop was due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later to avert massive losses like last week, when WTI fell below zero.
Traders seem to keep their eyes on the first GDP releases. The US and Eurozone economy declined in the first three months of the year, but the question is by how much. The Eurozone data calendar is light, and the currency pair may take hints from the broader market sentiment.
On Tuesday, crude oil prices fell for the second day in a series as concerns about diminishing global capacity to save crude and concerns that demand may be sluggish even after economies ease restrictions to battle the coronavirus pandemic.
Crude Oil – Daily Technical Levels
Pivot Point 13.88
WTI crude oil prices are facing an immediate resistance around 12.10 area. Violation of this level can extend bullish bias until the next resistance area of 13.95. On the lower side, oil has already completed a 50% retracement at 12.35 level, and now the next target can be 61.8% Fibo level, which holds around 10. Below this, the next support may be found around 8.45 and 6.75. Today, let’s keep an eye on 10.65 to determine the next trend. Good luck!