FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
95,479,062Confirmed
2,039,601Deaths
68,167,161Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
WTI Crude Oil

U.S. West Texas intermediate crude oil futures were under pressure most of the session on Friday as demand destruction caused by the coronavirus outweighed stimulus efforts by policymakers around the world. Warnings about a steep drop in demand and the lack of financial support from the U.S. government weighed on prices throughout the session.

On Friday, May WTI crude oil settled at $21.51, down $1.09 or -4.82%.

Advertisement
Know where WTI Crude Oil is headed? Take advantage now with 

75% of retail CFD investors lose money

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through $20.52 will signal a resumption of the downtrend. The main trend will change to up on a move through $36.70.

The minor trend is also down. A trade through $25.24 will change the minor trend to up. This will also shift momentum to the upside.

The minor range is $20.52 to $28.49. Its 50% level or pivot at $24.50 is controlling the direction of the market. Closing below this level is helping to generate the downside bias.

The short-term range is $36.70 to $20.52. Its retracement zone at $28.61 to $30.52 is resistance. The recent rally stopped at $28.49 on March 20, just under the short-term 50% level at $28.61.

Daily May WTI Crude Oil
Advertisement

Short-Term Outlook

May WTI crude oil has been walking down a Gann angle, moving at a rate of $1.00 per day from the $36.70 main top. We’re looking for the downside momentum to continue as long as this angle remains resistance.

Crossing to the strong side of the angle and the minor 50% level at $24.50 will signal the return of buyers. This is likely to be short-covering but if it creates enough upside momentum, the rally could even extend into $28.61 to $30.52.

There isn’t any incentive to buy crude oil as forecasts continue to point toward $15 to $10 crude oil. The White House is urging Saudi Arabia to dial back its plan to flood the crude market. Still, any agreement to curtail supply among producers will be too little and too late in the face of an unprecedented shock for the world’s oil refining system, Goldman said.

Unless the Saudi’s rescind their threat to flood the market with crude oil, prices are doomed to drop another $5 to $10 per barrel. If they withdraw their threat then prices will surge similar amounts, but gains will be limited by extremely low demand.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US