Bulls are here to stay?

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WTI analysis – 13 May 2020

By: Ahura Chalki

Private sector inventories have been raised for the week ending May 8, as API data show, into 7.580M comparing with 5.00M forecast (however it is still less than 8.400 M of the previous week).

WTI has been trading in a positive mood, from April low of $10, printed last days of the month.

For now the market is waiting for EIA data, while the fears of the second wave of COVID-19, will make the investors be more cautious. Today’s OPEC monthly report also will give us more ideas about the Oil market, supply, and demand as well as how committed countries applied the reduction of 9.7mbpd.

The short positive mode is so fragile since demand is still much lower than supply.

WTI technical overview – H1 Chart

Technical indicators are in positive mode. Price moves above the OBV trend line, while RSI at 60 and EMA crossing strategy also supporting the bulls. $26 is the immediate resistance, and breaching under $24, can bring the bears back into the market.

Pivot point: 25.21

Resistance levels: 26.25 / 27.21

Support levels: 24.25 / 23.21

Today, the expected trading range is between 23.21 support and 27.21 resistance.


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