Home Forex Forex Market Analysis Descending Trendline Resisting Crude Oil’s Bullish Bias – Get Set for Selling! 

Descending Trendline Resisting Crude Oil’s Bullish Bias – Get Set for Selling! 

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The WTI crude oil prices slid further, as the Trump administration extended social-distancing guidelines through April 30, leading traders to expect lower fuel consumption ahead. U.S. Nymex crude oil futures shed a further 6.6% to $20.09 a barrel, the lowest level since February 2002. Brent tumbled 8.7% to $22.76.

Crude oil prices are still facing selling pressure, even after the fresh, positive news in the market. The continued concerns about the global economic slowdown from the coronavirus pandemic kept giving some support to the U.S. dollars as a safe-haven demand. 

The negative correlation between the U.S dollar and commodities are keeping the WTI prices in a selling mode. During the beginning of this week, physical demand for WTI and its prices fell globally. 


WTI Crude Oil – Daily Technical Levels

Support Resistance 

20.95       22.42

20.13       23.06

18.66       24.53

Pivot Point 21.59

The WTI crude oil prices are facing resistance at 21.90, which is extended by the downward trendline. On the lower side, support stays at 19.45 level, which is also extended by horizontal support level. The MACD is suggesting bearish bias along with all the fundamentals in the market. Today we can look for adding selling trades below 20.75 with a target of 19.40. Good luck! 

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