Crude Oil analysis – 21 Feb 2020


This post is also available in: فارسی (Persian)


By: Ahura Chalki

The Kingdom of Corona!

There are many news and indexes that in the normal situation, many of them could change the market direction, cause the new season-high or low, however, market is ignoring API and EIA data, no matter if it was less or more than expectation, eyes on the governors and central banks, as more companies and countries as well reporting of decreased of sell and growth expectation and so on!

For now, in the oil market, everything depends on COIVID-19 headline and economic data, which may hit by the spreading of the virus. Today, CPI and PMI data can show a more realistic effect, as we are having the January and February information. Today and till writing this report, we had CPI data from Japan, which met the expectations, more data are coming later today from the EU members as well as the US, later at the evening.

WTI technical analysis:

Return from three weeks high synchronized with a lower volume of the market and lower demand, as fears of virus raising. The middle line of BB (20 SMA) in the H4 chart sits at $52.90 is the immediate support, next support come at $52.50 and February 06 high close to $52.30, 200-bar SMA, breaching these levels lower, will change the direction of past day to the downtrend. On the flip side, breathing above the upper band of BB ($54.55) can keep the WTI on-demand and trend for now.

Pivot point: 53.81

Resistance levels: 54.31 / 55.07

Support levels: 53.11 / 52.67

Today, the expected trading range is between 52.67 support and 54.31 resistance.

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