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WTI and week ahead!
By: Ahura Chalki
Despite the gain of the last trading hours of the first day of the week, black gold is trading under pressures of tensions, especially after the latest comments from WH. Reuters reported that “U.S. President Donald Trump provided assurance that the U.S.-China trade pact was “fully intact”, following confusing statements from the White House earlier over the fate of the deal.”, while the earlier report from White House trade adviser Peter Navarro, got the attention of traders when he told the press on Monday that the U.S.’s trade deal with China is “over”.
Along with new raises in COVID-19 infections, especially in the US and Latin American countries, continuing current tensions can stop the market’s bulls. Besides that, yesterday we had a report from India as well that their strategic reserves are full,
For the week ahead, economic data, especially PMI and EIA report will be matter. With lowering the US inventory levels, especially when “Baker Hughes Oil Rig Count” is in historical low, $45 will be in the spotlight, otherwise, raising the tension with rising inventory levels can put the dot, in the USOIL uptrend.
Technical overview – H4 chart
Technical indicators are still clearly supporting the bulls. RSI at 64, Candles are above the middle line of BB, and Parabolic SAR dots are way under the candles, however, the price just moved under the OBV trend line and while the price is raising, OBV is flat, signaling of possibility pf trend reversal.
Pivot point: 40.18
Resistance levels: 40.27 / 41.80
Support levels: 39.65 / 38.55
Today, the expected trading range is between 38.55 support and 41.80 resistance.
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