Crude Oil: WTI Bears Restrict Price Around $20 Level

Crude Oil: WTI Bears Restrict Price Around $20 Level

USDWTI Price Analysis – March 30

In the early Monday session, WTI slips to $19.95 price level. In doing so, the energy index stays nearly weak for so many years while posting declines for the fourth straight time since the weekend and is now looking to finish the month of March more than 50 percent weaker. Besides the dismal mood of the market, the lack of commitment on the part of major oil-producing countries to alter the production makes it impossible for oil to attempt a rebound.

Key Levels
Resistance Levels: $30.21, $25.00, $23.16
Support Levels: $17.00, $15.00, $10.00

USDWTI Long term Trend: Bearish

Oil prices steadily decreased to slide down just below $20.08 level in the support area. That indicates the pair’s latest attempt around this level. Prices are slowly picking up so far. Nonetheless, on the daily chart, the bearish price action indicates there is room for more downside.

But the double-bottom on the daily at the moment suggests the probability of a potential rebound. Currently, the price close to $27.40 level could be the obvious target. On the contrary, the $17.00 low level could be the next aim the moment the $20 support zone is unable to hold.

USDWTI Short term Trend: Bearish

In the short-term frame, the loss of $20.08 psychological level may trigger renewed selling and unmasking support at $17.00 (low) level with continuation to the next level, which is the psychological $10 level, which is not ruled out.

Conversely, an upward breach of the initial line of resistance, at a level of $23.16, may reach $27.40 and $30.21 levels during the subsequent advance. The bulls are less probable to be persuaded, even so, if they provide a consistent shoot-up far above top March 11 around $36.28 level.

Instrument: USDWTI
Order: Sell
Entry price: $20.84
Stop: $21.50
Target: $19.50

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.