Crude oil prices are trading in a bearish mode around 26.35 level. Selling bias dominates as oil prices returned to the downside after a Monday summit between the Organization of the Petroleum Exporting Countries and its allies, including Russia, was delayed to Thursday. U.S. Nymex crude oil futures sank 8.0% to $26.08 a barrel, and Brent slid 3.1% to $33.05 a barrel.
At the coronavirus front, the decreasing fear of coronavirus is also the reason behind the risk-on market sentiment. While the declining figures from Spain, Italy, and the U.K., the recent decline in the British death losses from the top of April 04 figures of 708 to 439, providing support to the market.
Looking ahead, the WTI crude oil traders will now wait for the private weekly inventory data from the American Petroleum Institute (API), prior 10.485M, for a new direction. This week's meeting by the OPEC+ group will be the key to watch. Besides, Russia and Saudi Arabia have signaled further cuts in the output.
| Support | Pivot Point | Resistance |
| 26.76 | 28.56 | 32.07 |
| 23.25 | 33.87 | |
| 17.95 | 39.17 |
On the technical side, the WTI crude oil continues to trade with a bearish bias, but it still holds over 25.20, which is working as a solid support today. As we can see in the 4-hour chart above, the WTI is consolidating in a range-bound market of 28.50 - 25.20. A bullish or bearish breakout of this sideway range will help determine further trends in the market.
The RSI is holding below 20 levels, which is suggesting the market is oversold, and traders may enter into the market to buy oil at a lower price to profit later. Let's get ready to sell trades beneath 26.60 today with a target level of 25.20 and stop-loss over 27.20 while we can open a buying trade around 25.20.
WTI Crude Oil – Trade setup
Sell Below: 26.60
Take Profit: 25.60
Stop Loss: 27
Buy Above 25.20
Take Profit 27.25
Stop Loss 24.80
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