WTI prices pop up above $41 after bouncing up from $40.50 lows

WTI futures trim losses after retreating to $40.50 lows
Oil prices remain weighed by fears about more lockdowns.
WTI oil remains biased higher while above $40.

Guillermo Alcala FXStreet

Front-month WTI futures have ticked up during Thursday’s US trading session to return towards $41. The price of the West Texas Intermediate barrel, though, remains slightly negative on the day, after having peaked at $42 on Monday.

COVID-19 concerns hit oil prices

Crude oil prices retreated earlier today amid a risk-averse sentiment as coronavirus cases continue escalating in the US and Europe. Fears about the impact of tighter restrictions have cooled off Monday’s enthusiasm following the promising results of Moderna’s vaccine.

Beyond that, the conclusions of Monday’s OPEC+ meeting, with the majority of the producer countries supporting an extension of the output cuts beyond January has failed to brighten sentiment. The market will wait for the full OPEC meeting due in November 30 and December to know cartel’s actions to take.

WTI prices consolidate above $40

From a technical perspective, oil prices are consolidating above $40 with technical indicators pointing upwards after having appreciated beyond 20% over the last two weeks.

On the upside, immediate resistance lies at $42 (November 16 high), $43 (November 11 high) and then late August highs at $43.80. On the downside, support levels are the mentioned $40 (psychological level and November 13, 16 lows) and below here, the 50-day SMA at $39.30 and $37.10 (November 5 low).

Technical levels to watch

WTI

Overview
Today last price	41.65
Today Daily Change	0.08
Today Daily Change %	0.19
Today daily open	41.57

Trends
Daily SMA20	39.35
Daily SMA50	39.56
Daily SMA100	40.55
Daily SMA200	37.18

Levels
Previous Daily High	42.34
Previous Daily Low	40.36
Previous Weekly High	43.28
Previous Weekly Low	37.43
Previous Monthly High	41.93
Previous Monthly Low	35.08
Daily Fibonacci 38.2%	41.58
Daily Fibonacci 61.8%	41.11
Daily Pivot Point S1	40.51
Daily Pivot Point S2	39.44
Daily Pivot Point S3	38.53
Daily Pivot Point R1	42.49
Daily Pivot Point R2	43.4
Daily Pivot Point R3	44.47

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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