Crude Oil: WTI Stays Vulnerable to the Downside as COVID 19 Spread Bites Harder

Crude Oil: WTI Stays Vulnerable to the Downside as COVID 19 Spread Bites Harder

USDWTI Price Analysis – March 26

After reaching 4 days high at $25.83, WTI oil drops below $25 mark, unable to retain progress, amid generally positive market sentiment after US Congress passed the stimulus package. Oil markets appear vulnerable to fresh declines, as perceptions of growing oversupply effects outweigh the direct impact of US measures.

Key Levels
Resistance Levels: $33.60, $30.21, $27.40
Support Levels: $21.50, $20.08, $15.00

USDWTI Long term Trend: Bearish

U.S. oil prices simmered down as government statistics indicated that last week the coronavirus pandemic was starting to undermine U.S. capacity for gasoline. Technical readings on the daily chart are not encouraging as the traction is flat deeper in the negative area, as well as RSI in horizontal mode on the boundary of the oversold region and MA’s 5 and 13 in bearish formation.

The pair is supposed to find support at $23.16 levels, and a drop through might take it to the next $21.50 support level. The pair is set to meet its initial resistance at $25.00 levels, and a surge by could carry it to the next $27.40 resistance level.

USDWTI Short term Trend: Bearish

The price of oil continues underneath downward pressure below its key MAs 5 and 13 as sellers are aiming for a continuation of the short squeeze underneath the $21/20 support zone level that could inject exposure to the $15 level on the downward trajectory.

On the other hand, buyers will be attempting to gather momentum beyond the $25 level of resistance with potential goals on the way north to the $27.40 and $30.21 price levels.

Instrument: USDWTI
Order: Sell
Entry price: $23.50
Stop: $25.00
Target: $20.08

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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.