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Old 24-02-2021, 07:56
MikhailLF MikhailLF is offline
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Join Date: Sep 2017
Posts: 795
Default Re: Forex News Analysis by LiteForex

WTI Crude Oil: oil prices are consolidating

Current trend

Yesterday oil prices hit record highs since January 2020. Today during the Asian session, the price moves flat, trading near $61 per barrel. It is supported by the optimistic market’s mood, expecting a further easing of quarantine restrictions and the restoration of oil demand to previous levels. However, the speech of the head of the US Fed Jerome Powell in Congress alarmed investors, as he noted that it would take "some time" for the economy to recover.

Yesterday’s API report on oil reserves also contributed to the development of corrective dynamics. For the week of February 19, stocks in the country rose by 1.026 million barrels after falling by 5.8 million barrels in the previous period. On Wednesday, traders are focused on the second Powell’s speech and the publication of a report on oil reserves from the US Department of Energy.

Support and resistance

Bollinger bands grow steadily on the daily chart. The price range narrows from above, reflecting the ambiguous nature of trading at the beginning of the week. MACD falls, maintaining a poor sell signal (the histogram is below the signal line). Stochastic reversed upwards after the flat dynamics and indicates the remaining “bullish” potential after the active growth at the beginning of the week.

To open new trading positions, it is better to wait until the signals from technical indicators are clarified.

Resistance levels: 62.18, 63.00, 64.00, 64.71.
Support levels: 60.50, 58.51, 57.25, 55.00.

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