oil price chart

Oil Prices Stabilize and Find Support

During the Asian trading session, oil prices show uncertain/mixed trading signals, trying to retreat from their record lows, renewed yesterday. The price fell by more than 11% on Wednesday, repeating the 18-year lows amid declining demand for energy, the coronavirus pandemic and the global economic slowdown.

Wednesday’s Ministry of Energy data reflected slightly weaker growth in inventories. For the week of March 13, the indicator rose by 1.954 million barrels after an increase of 7.664 million barrels over the previous period against the expectations of +3.256 million barrels.

Regarding the situation, Iraq, the second-largest oil producer in OPEC, called for an urgent call for an OPEC+ meeting to work out stabilization measures. The parties may come to at least an interim agreement because after the deal was broken in March due to disagreements between Russia and Saudi Arabia, oil production increased rapidly.

Oil Support and Resistance

On the daily chart oil price chart, Bollinger bands decline. The price range expands, letting the “bears” renew record lows. MACD falls, maintaining a sell signal (the histogram is below the signal line). Stochastic is near its lows ​​and indicates that the instrument may become oversold in the ultra-short-term.

It is better to wait until the situation is clear before opening new positions, and close a part of the profitable short positions in the short term.

Resistance levels: 24.00, 27.22, 30.00, 32.00.
Support levels: 20.00, 18.00.

Stock Market Today

Stock futures point to more losses a day after the Dow closed below 20,000 for the first time since 2017. Bears are likely to have a “feast.” Investors shouldn’t be surprised if the markets are stopped again because of triggers.

Here are the key points –

  • All Sectors Close Lower as SPY Makes a New 52-Week Low
  • Small-Cap Carnage has Been More Severe; IWM Off 40% From Highs
  • Breadth Remains at Washed Out Levels; Looking for Less Intensity
  • Global Stocks Undercut 2016 Lows
  • Futures Point to a Lower Open in Volatile Trade
  • US weekly jobless claims total 281,000, vs. 220,000 estimate
  • Investor Ray Dalio estimates the corporate losses in the US from coronavirus will top $4 trillion
  • EU’s Brexit negotiator Michel Barnier says he has tested positive for the coronavirus
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