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WTI analysis – 12 May 2020
By: Ahura Chalki
Oil futures rose on Tuesday, boosted by an unexpected commitment from Saudi Arabia to deepen production cuts (1M BPD) in June in a bid to help drain the glut in the global market that has built up as the coronavirus pandemic crushed fuel demand (Reuters). After Saudi Arabia, Kuwait also announced output cut by and additional 80K BPD from Jun, on top of its commitment to OPEC+ deal (Kuna).
While right after these announcements, the market jumped for almost dollar and twenty, however, deep worries from the Second wave of COVID-19 and red boards of stock markets, could not help the market to stay positive, lost all its gained numbers.
Today, the market is trading flat, keeping the same mode of past days, waiting for clearer signal, before making any decision.
While TECHNICAL indicators still supporting the side movement, fundamental signs, has not enough power to encourage the bulls.
WTI technical overview – H1 Chart
Technical indicators are totally supporting the side movement. BB bands moving flat, while the price is moving around the middle line of it, the OBV trend line is flat as well, while RSI moves at 51. $24.00 and $24.80 (lower and upper bands of BB) are immediate support and resistance at the moment.
Pivot point: 24.47
Resistance levels: 25.30 / 26.35
Support levels: 23.43 / 22.60
Today, the expected trading range is between 23.43 support and 25.30 resistance.
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