Crude Oil Descending Triangle Pattern - COVID 19 Continues to Play!

EagleFX Team EagleFX

Oil prices kept trading on the upside. U.S. Nymex crude oil futures charged 2.0% higher to $24.49 a barrel, and Brent edged up to $27.39. Crude oil prices are trading under pressure as the world may soon run out of place to save its excess oil as Saudi Arabia plans to expand its fossil fuel output even as the global market for energy extends to drop in the wake of Covid-19 pandemic.

Crude oil storage levels beyond the world's storehouse facilities have soared to nearly three-quarters complete on average since the January closedown of major factories in China's manufacturing heartlands to derive the outbreak of the coronavirus. Consequently, the market is trading crude oil with a bearish sentiment.

Support	Pivot Point	Resistance
23.75	24.64	25.78
22.61		26.66
20.58		28.69

Technically, the WTI has formed a descending triangle pattern, which is extending resistance at 24.30 level. The resistance is extended by a downward trendline, which is keeping the oil under bearish pressure. On the lower side, immediate support that crude oil can face is 22.88 area.

Typically, the descending triangles drive selling bias, and break out mostly occurs on the lower side. If that is the case, we may see oil prices heading lower towards 20.40.

WTI Crude Oil - Trade Setup

Sell Below: 23.90
Take Profit: 22.50/21.85
Stop Loss: 24.65

Try Secure Leveraged Trading with EagleFX!

Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.