WTI crude oil price is trading within a tight range following the commitment of G20 leaders to “do whatever it takes to overcome the pandemic.” As of this writing, WTI crude oil price CFD is trading at 22.72, slightly down from its opening price at 23.00.
Yesterday, government leaders of the twenty largest economies in the world had a teleconference meeting reading the coronavirus pandemic. They promised to work together and inject $5 trillion into the global economy. On top of this, leaders highlighted that they would collaborate to limit job and income losses.
This news may have been slightly bullish for crude oil price because it’s an attempt to get the world back to normal. Once the coronavirus pandemic settles and lockdowns are lifter, we could see economic activity pick up again. The expectation is that demand for oil will also increase.
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WTI Crude Oil Price Outlook
On the 1-hour time frame, it can be seen that WTI crude oil price CFDs has been making lower highs and higher lows. Consequently, a symmetrical triangle has formed. In forex trading, this chart pattern is considered as a neutral indicator. This means that an upside break, above yesterday’s highs at 24.29, could indicate a potential rally to 27.90 where WTI crude oil price topped on March 20.
WTI crude oil price CFDs, 1-hour
However, a look at the daily time frame suggests that sellers could be more dominant. Because the consolidation follows after a strong downtrend, a bearish flag chart pattern has consequently formed. This is considered as a bearish continuation pattern and a break below the recent consolidation could mean a potential drop to $19.00.