Oil Price Analysis: The Trump inspired sell-off could continue into next week
|- WTI moves 4.19% lower on Friday and 7.89% lower this week.
- Concerns over demand remain the key issue in the energy markets.
WTI 4-hour chart
Oil prices have broken down once again on Friday as concerns over demand loom. There was also some news overnight that US President Donald Trump has also tested positive for COVID-19. This also put pressure on the energy market as fears of another lockdown increase.
Looking at the chart, the next wave low could be very important. If the price breaks USD 36.40 per barrel when it would create a new lower high lower low pattern and the next support is lower down at the purple line just below USD 35 per barrel.
The indicators are still very bearish. The Relative Strength Index is hugging the oversold level and has been depressed for some time. The MACD is also very bearish as the signal lines are under zero and the histogram is also in the red.
Overall this looks like a decent trend change. The next confirmation will come if the purple support level is broken to the downside. There is always the possibility that the OPEC+ group may act again but for now, it seems the demand side has been capped.
Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.