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Old 20-10-2020, 07:46
MikhailLF MikhailLF is offline
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Join Date: Sep 2017
Posts: 823
Default Re: Forex News Analysis by LiteForex

WTI Crude Oil: oil prices are consolidating

Current trend

At the beginning of the week, oil prices show flat dynamics, holding near the level of $40.50 per barrel. Yesterday, the instrument was slightly supported by renewed hopes that a new stimulus package in the United States will be adopted before the presidential elections in November. However, by the close of the daytime session, optimism in the sentiment declined, and investors returned to discussing other problems.

A new growth factor may be the upcoming OPEC+ meeting in Vienna, where the cartel and its allies are expected to adjust the current program to reduce the supply of "black gold" to the market, as well as clarify the prospects for a gradual recovery in oil production next year.

On Tuesday, investors are focused on the American Petroleum Institute's report on oil reserves for the week of October 16. The previous publication reflected a sharp decline of 5.42 million barrels.

Support and resistance

On the daily chart, Bollinger bands move flat. The price range narrows slightly from below, remaining spacious enough for the current level of market activity. The MACD indicator slightly decreases, maintaining a poor sell signal (the histogram is below the signal line). Stochastic reversed at 80 and signals in favor of developing a corrective decline in the ultra-short term.

It is better to wait for the clarification of signals from technical indicators for opening new trading positions.

Resistance levels: 41.00, 41.43, 42.00.
Support levels: 40.00, 39.57, 38.97, 38.62.

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