Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

WTI Hovers Above the Psychological Zone of 20.00

WTI traded slightly lower today, drifting near a tentative downside resistance line drawn from the high of March 4th. Despite the price trading below that line and below all three of our moving averages, we prefer to adopt a neutral stance for now, as the bears have already failed twice to push it below the psychological mark of 20.00.

Today, the head of Russia’s sovereign wealth fund said that a new OPEC+ deal may be possible if other countries join in. His comments come after the group failed to reach consensus earlier this month, with the existing deal expiring on March 31st. Oil prices have not reacted to the comments, as investors may have remained cautious on the condition of other members joining in. It could also be that market participants remain unconvinced that any deal could offset the damage done to the global demand from the fast spreading of the coronavirus.

Technically, in order to start examining the resumption of the prevailing downtrend, we would like to see a decisive close below 20.00. This may initially pave the way towards the 17.12 area or the 15.61 hurdle, marked by the lows of November 2001 and April 1999 respectively. If the bears are not willing to stop there, further declines may result in a test near the lowest point of 1998, at around 10.65.

Looking at our short-term oscillators, we see that the RSI lies below 50, pointing down, while the MACD runs below both its zero and trigger lines, pointing south as well. Both indicators detect downside speed, but we can also see positive divergence between both of them and the price action, something which supports our choice to stand pat for now.

In order to assess the likelihood of a near-term reversal to the upside, we would like to see a strong recovery above 24.85. This could signal the break above the aforementioned downside line and would also confirm a forthcoming higher high on the 4-hour chart. The bulls may initially aim for the 28.25 barrier, marked by the high of March 20th, the break of which could encourage them to push towards the peak of March 13th, at around 34.00.

WTI crude oil 4-hour chart technical analysis


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.