On Friday, the price of oil is rising, adjusting after falling the previous day. The aggravation of the trade conflict between China and the United States, as well as the growth of oil reserves in the United States provoked a sharp drop in oil prices.
Futures for WTI oil on the NYMEX closed on Thursday with a decrease of 5.7%, at $ 57.91 per barrel, the lowest level since March 12. It was the sharpest drop since December 24.
The United States has added the Chinese corporation Huawei to a “black list”, imposing significant trade restrictions on the company.
At the same time, on Wednesday, the Energy Information Administration of the United States Department of Energy presented regular weekly data on oil reserves, which rose last week by 4.7 million barrels to 477 million barrels, the highest since July 2017. Also increased reserves of gasoline and distillates.
WTI crude oil traded at the beginning of the European session at 58.42, by $ 0.35 above the opening price of today.
At 17:00 (GMT), the American oilfield services company Baker Hughes will publish its weekly report on the number of active drilling rigs in the United States. If the report indicates an increase in the number of such installations (currently it is 802 units), this may give an additional negative impetus to prices.
The price of WTI crude oil is trading on Friday below key support levels of 59.90 (EMA200 and EMA144 on the daily chart), 59.50 (Fibonacci 50% level of the upward correction to a fall from the highs of the last few years near the mark of 76.80 to the level of support near 42.14), slightly higher support level 56.85 (EMA200 on the weekly chart).
Growth in the zone above the levels of 56.85, 59.50, 59.90 will cause the resumption of the bullish trend.
The breakdown of the support level of 56.85 will open the way to the support level of 55.40 (Fibonacci level of 38.2%). Breakdown of this support level will revive the bearish trend.
Support Levels: 57.00, 56.85, 55.40
Resistance Levels: 59.50, 59.90, 61.10, 61.50, 61.85, 63.50, 64.40, 66.50
Trading Recommendations
Sell Stop 57.80. Stop Loss 58.80. Take-Profit 57.00, 56.85, 55.40
Buy Stop 58.80. Stop Loss 57.80. Take-Profit 59.50, 59.90, 61.10, 61.50, 61.85, 63.50, 64.40, 66.50
