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By: Ahura Chalki
WTI infected with the Chinese virus!
Oil prices eased on Wednesday, extending declines as the International Energy Agency (IEA) forecast a market surplus in the first half, helping ease concerns about disruptions that have slashed Libya’s crude output (Reuters). On the other hand, after worries of further spread of the virus to other cities in China and possibly spread to other countries, it affected the markets and added more doubts on global economic growth and oil demand, which again has a negative effect on the Oil price. Because of the Monday holiday, this week EIA and API will be realized today later and tomorrow evening. For now, news and fundamental signs are not in favor of Oil.
WTI Technical analysis:
In the H4 chart, while technical indicators remain of the soft bearish move, BB bands are getting closer together, signaling of the possibility of a bigger move from this level, which can be either hard dropping or jumping. Market volume is getting less, while Parabolic SAR, and RSI, both supporting the bears, the same signal, which Stochastic also has.
Pivot point: 58.21
Resistance levels: 58.77 / 59.35
Support levels: 57.63 / 57.07
Today, the expected trading range is between 57.07 support and 59.35 resistance.
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