Crude Oil Price: WTI Dives in Free Fall Mode at Two Decades Low Beneath $15 Level

USDWTI Price Analysis – April 20

WTI Oil plummeted at the beginning of the week’s market falling underneath the $15/bbl as the globe was growing out of storage and crude stocks began to accumulate owing to coronavirus shutdowns in most of the global economy. Crude may have been the ultimate casualty of the decline of global demand with market situation increasingly compounded by Saudi Arabia’s price war with Russia.

Key Levels
Resistance Levels: $21.50, $20.08, $17.00
Support Levels: $13.00, $10.00 $8.00

USDWTI Long term Trend: Bearish

Here are some significant support and resistance levels in terms of technical price levels based on a medium to long-term (4 to 7 months) period. Unless the price falls under $13 to $10 (which is probable), the upside range will be between $21.50 and $23.16 levels.

Unless the price drops to $10 and below, a probable scenario, the price at the immediate threshold maybe $15 to $17 levels. The bottom line is that oil prices are undoubtedly well over-sold at the current level, however, given the constraints, the price may probably keep falling lower.

USDWTI Short term Trend: Bearish

Oil trades on the 4-hour chart beneath its 5 and 13 moving averages-a bearish sign. Initial support is seen on the low level at $13. Past this zone, it provides support after the round figure at $10 level. Resistance is seen at $17.00 (near high) before reaching $20.08 levels (5&13 MA crossings) and $21.50 (14 April) level.

WTI rates stay somewhat under stress. The constant rise in trading volume and quantity despite negative price swings paves the way for the moment to the reassertion of the downtrend, with the $10.00 mark per barrel evolving as the next key support.

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