Crude oil price managed to rebound today after yesterday’s sell-off that hit fresh four year lows amid the price war between Russia and Saudi Arabia. During the weekend, Saudi Arabia announced that it would slash oil price starting in April. The news came to an already battered oil price as the global demand drops due to the coronavirus spread.
Markets rebound today after President Trump said that the White House would meet to consider a substantial economic relief measure to combat the coronavirus outbreak, which may include a payroll tax cut. Japan plans to spend 430.8 Bln Yen in the second package to off-set the coronavirus outbreak impact.
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Crude Oil Prices Resistance and Support
The crude oil price is 5.33% higher at $32.80 recovering some of yesterday’s heavy losses, the largest drop since January 1991, during the Gulf War. The technical outlook is clearly bearish despite today’s rebound. Crude oil price is in a deeply oversold level, and a sharp rebound can’t be ruled out.
On the upside, crude oil price first resistance stands at $33.73 the daily high. If the crude price breaks the initial resistance, the next hurdle will be met at $34.87 the high from yesterday’s trading session. More offers will be met at 41.74 the low from Friday’s trading session which will also close the Monday’s gap down.
On the flip side, the first level to watch is the daily low at $30.20. Next strong support zone for crude oil price stands at 27.74 the low from yesterday and the four-year lows.
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