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WTI analysis – 19 March 2020

By: Ahura Chalki

WTI trading in the area, which has been trading last time, in 2003.

Asian stocks triggering lower, as US futures do.

“Foreign investors sold some $317 million net of KOSPI shares Thursday, taking the sell-off into an 11th straight day,” (Bloomberg)

Asian stocks started again with the red color. At the time of writing, Nikkei and shanghai, both down more than 1%, while Hang Seng losing by 2.40%. The Australian gauge, ASX 200, fails to cheer the RBA’s rate cut and QE while New Zealand’s NZX 50 also follows the footsteps as the indices mark 3.40% and 3.20% respective losses by the time of writing.

Trading and manufacturing volume in all over the globe falling lower to test the lowest historical levels, worse than previous experiences of 1978, 2002 and 2008-9. On the other hand, production limited are over from OPEC+ and it all helps to bears to lead the market.

WTI technical analysis:

WTI overnight recovery from a multi-year low of $20.50 could not go more than $24.50, rejected in the earlier Asian trading season back to $21.80, however, technical indicators show the oversold market, which can stable the market and act as a break here for WTI price.

In the H1 chart, Parabolic SAR supports the bull, while RSI and Stochastic also returning up from the oversold area. 20 HMA at $23.40 is the key resistance, which WTI is trading above that at the moment. Keeping the position above this level can send the bulls back to $26 while breaching under this level, can bring the bears to the power, for lower prices, under $20.

Pivot point: 23.41

Resistance levels: 26.33 / 30.51

Support levels: 19.23 / 16.31

Today, the expected trading range is between 19.23 support and 26.33 resistance.


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