Forexs - WTI Crude Oil Price Analysis for March 6, 2020

Forexs

Dec 29 2023 • 0 seconds

WTI crude oil is resuming its slide as it formed a small double top around the area of interest marked on the 1-hour chart. Price could head for the next downside targets marked by the Fib extension tool from here. The 100 SMA is still below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. However, the gap between the moving averages is narrowing to reflect weakening selling pressure and a potential bullish crossover. Price is still below both dynamic inflection points for now, so bearish momentum is present. In that case, WTI crude oil could aim for the first target at the 38.2% Fib extension from here as this lines up with the swing low around $44.60 per barrel. Stronger selling pressure could drag it down to the 50% extension at $43.34 per barrel or the 61.8% level at $42 per barrel. The 78.6% level is at $40.31 per barrel and the full extension is at $38 per barrel. Stochastic is on the move up after dipping close to the oversold region, though, indicating that buyers are eager to take over while sellers take a break. RSI is also heading north without hitting the oversold territory, also reflecting a return in bullish pressure. In that case, crude oil could attempt to break past the area of interest around $48.64 per barrel. The OPEC agreed to cut their output in an effort to keep prices supported amid the coronavirus outbreak. After all, this is weighing heavily on fuel demand as trade and travel restrictions are still in place, thereby hurting crude oil prices. Still, the EIA reported a lower than expected build of 0.8 million barrels in crude oil inventories for the past week versus the projected increase of 2.8 million barrels.



SOURCE : https://tradertalks-net.translate.goog/s/907?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

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