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WTI analysis – 9 June 2020
By: Ahura Chalki
WTI declined yesterday, after touching three months high of $40.38, by 6.16% to a daily low of $37.90, despite OPEC plus extension of current 9.7M bpd supply cut for one more month, ending July 2020.
Today, the Oil market has been supported with Stocks rally. Dow 30 closed with 461 points (1.70%) gain and S&P500 raised by 1.20% (38.46 points). In the Asian market, Hang Seng followed the way with 430 points gain (1.74%) and Shanghai trading better with 0.34% gain. Positive sentiment is leading the market at the moment.
In OPEC front, Iraq and Nigeria committed to cut more in the following month to adapt to the reduction program, which they have been missing.
At the moment, while the market will take care of today evening’s API report and tomorrow’s EIA, the stock market can help the WTI bulls.
Technical overview – H1 chart
RSI moves flat at 47, while price moves on the Middle line of BB and above OBV trend line, technical indicators cannot confirm any special trend at the moment, while in H4 chart also they have mixed signal.
Pivot point: 38.61
Resistance levels: 39.32 / 41.10
Support levels: 36.84 / 36.13
Today, the expected trading range is between 36.84 support and 39.32 resistance.
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