Home Forex Forex Market Analysis Crude Oil Testing Double Top – U.S. Session Trade Setup!

Crude Oil Testing Double Top – U.S. Session Trade Setup!

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The WTI crude oil prices rose slightly, mainly due to the hopes of deeper supply cuts from the major producers. The U.S. Crude Oil WTI Futures inched up 0.1% to $51.48 by 12:30 AM ET (04:30 GMT).

The Organization of the Petroleum Exporting Countries (OPEC) dropped its 2020 demand forecast for its crude by 200,000 barrels per day, indicating worries regarding the coronavirus outbreak in China, the world’s biggest oil importer.

While the International Energy Agency expected a drop of 435,000 barrels a day during the first 3-months of the year, it had previously expected world fuel consumption to rise by 800,000 barrels a day as compared to a year earlier.

The WTI oil prices have fallen nearly 20% from their tops in early January, mainly due to oil demand from China fell in the wake of travel restrictions. The China Health Commission, the epicenter Hubei province, reports 4,823 new cases on the second day of using the new diagnosing method. The number of people in severe and critical conditions rose to 9,638 from the prior figures of 7,084.

Daily Support and Resistance

  • S1 49.01
  • S2 50.24
  • S3 51.05

Pivot Point 51.47

  • R1 52.28
  • R2 52.7
  • R3 53.92

On the technical side, the WTI crude oil is holding below 52.07 resistance level, which is keeping the oil prices under pressure. The market is lacking volatility, as traders are staying out of the market ahead of the weekend. In any case, the bullish breakout of 52.07 level can extend buying until 53 and 53.25 while the selling can be seen below the 52.07 mark. The RSI and MACD are holding in the buying zone, suggesting chances of buying trends in the WTI. Today, we can place a buy stop around 52.15 to target 52.65. Good luck! 

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