Blog post

Technical Analysis: No mercy of WTI traders despite oversold RSI

Although WTI recovers Monday's losses, the energy benchmark still stays below the monthly resistance line, which in-turn portrays the bears' dominance over the oil prices. However, $10.00 is likely an immediate downside barrier for the quote. Should there be a further downside below the year 1998 low, traders won't hesitate to challenge the $8.00 to recall the 1980's.

If an oversold oscillator manages to escalate the recovery moves beyond the support-turned-resistance line of $16.70, $21.00 could please the buyers. However, 21-day EMA and a downward sloping trend line from late-February, near $23.3, could check the bulls then after. Other than the technical signals, fundamentals are also in favor of a pullback considering the likely further production cuts from OPEC, US, Canada and Russia. Though, coronavirus carnage and the huge inventories keep disappointing the optimists.

Join us on FB and Twitter to stay updated on the latest market events.

Our awards

award1 award2 award3 award4 award5