The Oil prices halted a three-session rally as worries over declining energy demand lingered. U.S. Nymex crude oil futures shed 7.7% to $22.60 a barrel, and Brent sank 3.8% to $26.34.
One of the big reasons behind such a sell-off is the coronavirus death losses. Particularly in Spain, they officially crossed the China figures and becoming the 2nd-highest in the world. The United States cases crossed China figures of more than 81,000 virus cases and reached on the top of the list.
On the other hand, the U.K. reported the highest single-day rise in the death toll by 103 to 578 yesterday. The health system is falling under the weight of the disease. However, the coronavirus outbreak is not showing any sign of slowing down, increasing level threats around the globe. Consequently, the traders are feeling hesitant to store crude oil as a drop in demand may result in further drops in oil prices.
|
Support |
Pivot Point |
Resistance |
|
23.04 |
23.96 |
24.8 |
|
22.21 |
25.72 |
|
|
20.45 |
27.48 |
Technically, the WTI crude oil is trading at 21.65, breaking below the support level of 22.65, which is now working as a support. Overall, WTI Oil has formed a descending triangle pattern on the 4-hour chart that has the potential to support oil prices at 20.40. Closing of candles below 20.40 may trigger further selling until 17.70 in the coming days. Let's look for selling trades beneath 21.50 today with a target level of 20.40 and stop-loss over 22.
WTI Crude Oil - Trade Setup
Sell Below: 21.50
Take Profit: 20.40
Stop Loss: 22
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
Recommended Content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Ethereum could remain inside key range as Consensys sues SEC over ETH security status
Ethereum appears to have returned to its consolidating move on Thursday, canceling rally expectations. This comes after Consensys filed a lawsuit against the US SEC and insider sources informing Reuters of the unlikelihood of a spot ETH ETF approval in May.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.