WTI Price Analysis: WTI meets some offers at the psychological $40 resistance


  • Spot WTI drops over 1% on Tuesday after testing the USD 40 per barrel level.
  • There is an ascending wedge pattern on the hourly chart which is currently being tested.

Spot WTI 1-hour chart

Looking at the hourly chart below, the price has hit the psychological USD 40 per barrel mark and sold off quickly. One of the key features on the chart is the ascending wedge formation and at the time of writing the bears are testing the zone. If the wedge pattern does break the price could move to lower levels.

The next support zone is the black horizontal line just above USD 38.50 per barrel. Beyond that, the next support is slightly stronger at the blue level near USD 37 per barrel as it has been tested more times. On the upside, the bulls were not able to test the green level but watch out for it in the future as it could be important later on down the line. 

The Relative Strength Index indicator made a lower high wave as the market made a higher high. This is called bearish divergence and could have been an early signal for a loss in momentum. The MACD histogram is in the red and the signal lines are still above the mid-point. This is conflicting and if the signal lines do dip below the mid-point it could spell trouble. 

On the higher timeframes, the price is still in an uptrend. This whole move could just be a retracement but if the support zone at USD 37.17 per barrel breaks it could be the start of a trend change.

WTI Technical Analysis

Additional levels

WTI

Overview
Today last price 39.25
Today Daily Change -0.41
Today Daily Change % -1.03
Today daily open 39.66
 
Trends
Daily SMA20 38.38
Daily SMA50 31.04
Daily SMA100 33.81
Daily SMA200 45.34
 
Levels
Previous Daily High 39.92
Previous Daily Low 37.6
Previous Weekly High 41.65
Previous Weekly Low 37.18
Previous Monthly High 35.92
Previous Monthly Low 19.61
Daily Fibonacci 38.2% 39.03
Daily Fibonacci 61.8% 38.49
Daily Pivot Point S1 38.2
Daily Pivot Point S2 36.73
Daily Pivot Point S3 35.87
Daily Pivot Point R1 40.53
Daily Pivot Point R2 41.39
Daily Pivot Point R3 42.86

 

 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures