Crude Oil: WTI Recovery Uncertain Due to Loss of Demand While Capped Around $52.00 Levels

Crude Oil: WTI Recovery Uncertain Due to Loss of Demand While Capped Around $52.00 Levels

USDWTI Price Analysis – February 17

The loss of oil request in China and around the globe because of the outbreak of coronavirus is noteworthy, yet stays obscure both in scale and in the term, while the planning and size of the potential decrease in OPEC + production likewise stay exceptionally unknown.

Key Levels
Resistance Levels: $ 59.61, $ 55.00, $ 53.50
Support Levels: $ 52.00 $ 50.00, $ 49.42

USDWTI Long term Trend: Bearish

The price of WTI crude oil remains stable and keeps close to the recovery zone at the level of $ 52.25. As the bulls pause while they are contained by the moving average of 5 and 13. Daily analysis indicates consolidating / corrective actions while the RSI grows and the momentum reverses south after touching the nearest resistance.

The overall picture, however, is bearish and the current action is seen as corrective and positioning for new weakness. A strong technical barrier lies at the level of $ 53.50, and a steady breakthrough may contain the bear’s capabilities and allow a stronger correction to the level of $ 54.35.

USDWTI Short term Trend: Ranging

Crude oil prices set past the resistance level of $ 52.00, while the increase came after strong bearish pressure in previous weeks.

The growth may lead to a corrective movement, pushing prices to the level of $ 53.50 in the following. This, of course, if the price action can hold past the $ 52.00 level resistance, turned support level.

Instrument: USDWTI
Order: Buy
Entry price: $ 52.00
Stop: $ 49.42
Target: $ 53.50

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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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.