WTI holds directionless near-term mode but risk remains shifted to the downside
WTI oil price remains within this week’s range ($27.67/$36.58), established after early Monday’s crash, when oil prices collapsed to 4-year low on signs of price war between two key oil producers – Saudi Arabia and Russia.
Traders showed strong indecision after oil prices strongly dropped on Monday (which is presented by weekly long-legged Doji candle), keeping the price in directionless mode for the whole week.
Overall picture is negative, as corona virus pandemic threatens of strong drop in global demand for oil that could push prices further down.
Markets await for fresh headlines to get more clues about near-term action, but risk is expected to remain firmly at the downside as long as Monday’s gap remains unfilled.
Res: 34.20; 35.24; 36.58; 39.31
Sup: 30.74; 30.41; 30.00; 29.00