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By: Ahura Chalki
Chinese re-opening saved the WTI!
“Crude remains under pressure from worries over demand destruction from the coronavirus,” said Vandana Hari, founder of Vanda Insights. “Prices are likely to continue drifting lower in tandem with the progression of the epidemic.”(Investing.com).
WTI still holds under pressure regarding lower demand, caused by CoV and many factory closures. However, yesterday WTI moved a bit higher as part of industries restart their activities. Also, there were some none-confirmed reports that some big investors buy and hold cheaper oil contracts with discounts (this system and structure known as contango). These reports also helped the WTI price to recovery a bit more.
Still, for the oil market, CoV headlines and tomorrow’s EIA report will be in the spotlight.
WTI technical analysis:
In the H1 chart, technical indicators mostly returned to a positive mode. RSI in the natural zone, Stochastic and BB, supporting the bulls.
$50.75, the 100 H-MA is the immediate key resistance and the lower band of BB at $49.55 is the key support at the moment.
Pivot point: 49.93
Resistance levels: 50.33 / 51.02
Support levels: 49.23 / 48.83
Today, the expected trading range is between 49.23 support and 51.02 resistance.
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