crude oil woes

WTIUSD Technical Analysis Report 21 December, 2020

  • WTI oil reversed from round resistance level 50,00
  • Likely to fall to 45,35

WTI oil recently reversed down from resistance area lying between the powerful round resistance level 50,00 (former major support from the start of February) and the upper daily Bollinger Band. The downward reversal from this resistance level 50,00 stopped the previous short-term impulse wave (iii) of the medium-term impulse wave (B) from the middle of April.

Given the strength of the resistance level 50,00 and the strengthening risk-off sentiment seen across the commodities markets today (after the faster spreading form of covid-19 virus was found in UK) – WTI oil is likely to fall further toward the next support level 45,35 (top of the previous impulse wave (i) from the end of November).

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