Crude Oil: WTI Rally on Supply Disruption Fears, Reducing Coronavirus Spread

USDWTI Price Analysis – February 20

Black gold expanded the latest recovery momentum in the Asian session and renewed a three-week high of $ 54.08, reporting a slight increase at $ 53. In European trading this Thursday, as sentiment was raised due to concerns about interruptions in supplies, and decreased Coronavirus spread amid China’s preventative measures.

Key Levels
Resistance Levels: $ 59.61, $ 56.78, $ 54.35
Support Levels: $ 52.00 $ 50.00, $ 49.42

USDWTI Long term Trend: Bearish

Prices for a barrel of WTI rose significantly in the previous session, recovering to a level of $ 53.00 level and above. The increase in open interest allows a bullish movement to continue, although a moderate drop in volume warns against a sustainable recovery at present.

However, as anticipated, the next remarkable target in crude oil appears on the slope of the moving average of 5 and 13 near the upper horizontal resistance at $ 56.78 level today.

USDWTI Short term Trend: Ranging

On the other hand, in the 4 hours, oil prices are steadily rising after a weak period and after breaking through the resistance level of $ 51.50, the price remains stable, as WTI is aiming at the level of $54.35.

Shortly there is an opportunity for recovery. But the fall could be held back to $ 51.50 level support to firmly gain a foothold.

Instrument: USDWTI
Order: Buy
Entry price: $ 53.50
Stop: $ 52.00
Target: $ 54.35

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