The WTI crude oil has dropped to the weekly support level of 20, before bouncing off to trade at 23.94. Despite the small recovery in oil prices, analysts continue to give a warning about the coronavirus negative impact on the global market because the cases continue to rise and death losses as well.
Moreover, the continuing price war between producers Saudi Arabia and Russia is also not showing any ending probability, despite Russian hints at a preference for higher prices on Wednesday, as per the latest report. Whereas, the recently positive inventory numbers from the US failed to give any good signals to the buyers.
At the USD front, the greenback continues to flashing green and remains as the market favorite, mainly due to its safe-haven currency status. On the other hand, the moves offer unstable trading sessions due to the downbeat performances of the Asian stocks. A stronger dollar is also placing a bearish bias on the WTI prices due to it’s negative correlation.
Investors will keep their eyes on the coronavirus headlines since the global struggles to control the pandemic. It should also be noted that the fears of the deadly virus continue to weigh on the markets’ risk-tone, but the US equity futures have recovered off-late after the ECB’s announcement. Eventually, the demand for crude oil is suffering.
Pivot Point 23.66
On the technical front, the WTI prices are likely to find support around 20. and 13, while the resistance stays around 26. The MACD and RSI are suggesting a sharp selling trend in the oil, especially after it has closed three black crows pattern on the weekly timeframe, which is making it a big deal. Let’s consider staying bearish below 26 and bullish above 20 today. Good luck!