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Crude Oil analysis – 23 March 2020
By: Ahura Chalki
WTI started the week under pressure, as more lockdown expecting in the European countries as well as in the US. Even though Chinese factories returning back into their normal working hours, however, fears are growing more in Europe, Asia, and the Middle East.
On the other hand, Russian and Saudis price war has no bright prospects
For now, despite all news, investors, and traders looking at the reality of lower demand, caused by Covid-19. Fewer factories work, lower flight and road trips, as tourist industry working in almost 0% of its capacity! If we cannot see any real change in the supply, demand will not help the prices, at this moment.
WTI technical analysis:
In the H1 chart, Stochastic returning lower from the oversold area, in the downtrend, RSI moves under 50, while candles are clearly under 20 HMA, however, Parabolic RSI, started its dots under candles, signaling of correction or short term uptrend at this level.
$28.46 March 20 high and 20.08, the March 18 low are key resistance and support levels.
Pivot point: 24.64
Resistance levels: 26.75 / 30.65
Support levels: 20.75 / 18.63
Today, the expected trading range is between 20.75 support and 26.75 resistance.
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