WTI futures June contract expiry day!

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WTI analysis – 19 May 2020

By: Ahura Chalki

Confusing trades on the last day of Jun contracts continued with uptrend and gaining in early Asian season, however, later bears took the control of WTI market. Yesterday, after reports of raising the number of contracts for July, WTI gained more than 8%.

For today, the US market reaction on the last day of contracts will be matter and then, API weekly report. Today’s API report and tomorrow’s EIA will move the market, especially after lower production in the US and slowly growing the demand, after easing in lockdowns.

For now, black gold is in demand, and the market is positive about that, however, still, we are far than the pre-COVID-19 economic environment and have to remember it takes time for a full recovery, and the market still needs the balance between supply and demand. While storage tanks almost full, the fragile recovery in economies and businesses, faced with the second wave of virus spreading, which makes the market to be more patient and bulls under pressure.

WTI technical overview – H1 Chart

OBV trend line returned to the negative mode, RSI sloping lower at 53, and candles forming under the middle line of BB. Parabolic SAR forms its dots way above the candles.

Pivot point: 31.83

Resistance levels: 33.87 / 35.05

Support levels: 30.65 / 28.60

Today, the expected trading range is between 28.60 support and 33.87 resistance.


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