On Tuesday, the WTI crude oil prices rose slightly amid signs that producers are slashing production as agreed just as demand picks up, stoked by more nations lifting out of curbs forced to counter the coronavirus pandemic.
On the negative side, some countries reporting the second wave of coronavirus which damages the latest recovery in demand as in result, the storage tank is getting almost filled, which will be considered not good for oil prices.
At the US-China front, the latest recovery in the oil demand could be fade if the war between the United States and China escalates further, which may push the oil prices down. However, the investors are cautious while thinking that the second wave of coronavirus could be attributed to the easing of restrictions in lockdowns.
On the other hand, the latest optimism surrounding the market about Moderna (NASDAQ: MRNA) reports of positive results on Monday from its round one experiment for its COVID-19 vaccine, also exerting some bullish impact on the oil prices.
Daily Support and Resistance
- S1 26.6
- S2 29.28
- S3 30.84
Pivot Point 31.97
- R1 33.52
- R2 34.65
- R3 37.33
The technical side of crude oil is neutral today as oil prices continue to hold around 31.75. On the 4 hour chart, the WTI has formed a tweezers top pattern around 31.66, and typically such a pattern drives selling bias in the WTI prices. With that being said, the WTI prices may find support around 38.2% and 61.8% Fibonacci retracement, which holds around 30.35 and 28.30. While bullish breakout of 33.24 may lead to WTI prices further higher towards 35. Good luck!