WTI oil attempting to bounce up from $93.40 lows

WTI futures pick up to $98.00 from three-week lows at $93.40
Oil prices plunge on easing supply concerns and COVID-19 cases in China.
From a wider perspective, US oil futures remain biased lower.

Guillermo Alcala FXStreet

The US benchmark crude oil futures are attempting a mild correction on Tuesday’s US trading session. Front-month West Texas Intermediate contracts have appreciated about $4 over the last two hours, returning to levels past $98.00 after hitting three-week lows at 93.45 earlier today

Oil prices dive on easing concerns about supply

Oil prices have plunged nearly 30% from early-March highs above $129.00. Market concerns about a global supply shortage on the back of sanctions on Russian oil seem to have eased on hopes that Saudi Arabia and the United Arab Emirates are ready to increase production.

Furthermore, the exponential increment of coronavirus infections in China, which has already imposed lockdowns in some cities, has triggered concerns about a decline in demand from the Asian giant which is contributing to cool prices.

WTI Oil is trading within a sharp downward trend

A look at the 4-hour chart shows oil futures trapped within a clear negative trend from early March highs. WTI futures are testing support right above the 50-day SMA, around $92.00, with the next potential targets on the downside, at $89.80 (February 25 low) and $86.40 (Jan. 28 and 31 lows)

On the upside, the pair is struggling to extend past $98.20. Above here, the next targets might be at $99.30 (intra-day high) and the $100.00 level.

Technical levels to watch

WTI US OIL

Overview
Today last price	95.02
Today Daily Change	-5.48
Today Daily Change %	-5.45
Today daily open	100.5

Trends
Daily SMA20	100.38
Daily SMA50	91.22
Daily SMA100	83.3
Daily SMA200	77.78

Levels
Previous Daily High	106.79
Previous Daily Low	98.12
Previous Weekly High	126.51
Previous Weekly Low	101.2
Previous Monthly High	100
Previous Monthly Low	85.74
Daily Fibonacci 38.2%	101.43
Daily Fibonacci 61.8%	103.48
Daily Pivot Point S1	96.81
Daily Pivot Point S2	93.13
Daily Pivot Point S3	88.14
Daily Pivot Point R1	105.49
Daily Pivot Point R2	110.47
Daily Pivot Point R3	114.16

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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