WTI STAYS BELOW AND CONFIRM SUPPORT AS A RESISTANCE
Crude oil is one of the most in-demand commodities, with the two most popularly traded grades of oil being Brent Crude and West Texas Intermediate (WTI). Crude oil prices reflect the market’s volatile and liquid nature, as well as oil being a benchmark for global economic activity.
Indeed, as markets await more clarity about the impact of Omicron on the global demand picture, rangebound trade makes sense. On which note, OPEC said it expected the impact of the Omicron Covid-19 variant to be mild as the world continues to adapt to the presence of the pandemic.
WTI crude oil traded lower on Monday after it hit resistance slightly below 73.60. The black liquid has been trading in a sideways manner, between that barrier and the support of 70.55 since December 7th, but overall, it remains below the downside confirmed resistance line which was the support price line taken from the low of November last year. Thus, the traders see more chances for a downside exit of the short-term range rather than an upside one. A clear break below the 61.8 Fibo and round figure of price level 66.00, would confirm a forthcoming lower low on a daily chart and may initially target the low and psychological level around 60.00. Slightly lower lies the 31.8 Fibo level around 54.50, the break of which could see scope for extensions towards the strong support line taken from 2019 around 51.00 per barrel.
Looking at our oscillator indicators we can see that RSI stopped and rebound from the oversold zone.
In order to start examining whether the bulls have gained the upper hand, the traders would like to see a strong rebound back and break through the daily support line above 76.00. This could confirm the break above the upside support line taken from the low of November 2020, and could initially target the previous high around 84.00 – 85.00 price zone.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
Indeed, as markets await more clarity about the impact of Omicron on the global demand picture, rangebound trade makes sense. On which note, OPEC said it expected the impact of the Omicron Covid-19 variant to be mild as the world continues to adapt to the presence of the pandemic.
WTI crude oil traded lower on Monday after it hit resistance slightly below 73.60. The black liquid has been trading in a sideways manner, between that barrier and the support of 70.55 since December 7th, but overall, it remains below the downside confirmed resistance line which was the support price line taken from the low of November last year. Thus, the traders see more chances for a downside exit of the short-term range rather than an upside one. A clear break below the 61.8 Fibo and round figure of price level 66.00, would confirm a forthcoming lower low on a daily chart and may initially target the low and psychological level around 60.00. Slightly lower lies the 31.8 Fibo level around 54.50, the break of which could see scope for extensions towards the strong support line taken from 2019 around 51.00 per barrel.
Looking at our oscillator indicators we can see that RSI stopped and rebound from the oversold zone.
In order to start examining whether the bulls have gained the upper hand, the traders would like to see a strong rebound back and break through the daily support line above 76.00. This could confirm the break above the upside support line taken from the low of November 2020, and could initially target the previous high around 84.00 – 85.00 price zone.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.