After reaching the annual minimum, a moderate-upward movement is developing on the WTI chart. Investors react to stock exchanges' recent developments. Major global indices today are traded in the green zone due to a decrease in an intimidated attitude associated with the coronavirus epidemic impact on the global economy.
The fact that after hitting an annual minimum many speculative investors began to fix short positions in oil also contributes to the development of the correctional movement.
Reuters reports that OPEC+ countries are considering reducing production quotas up to 0.5 million barrels per day to stabilize the market. These reports also have a positive impact on the market. Today, the technical committee will hold a meeting in Vienna. The results of this meeting are most likely to have the strongest impact on the oil market today.
Regarding the chart, we can expect the development of a stronger correctional movement, as the bears could not keep the price below the level of 50.25. A “false breakdown" reversal signal is now being formed. Therefore, the main trend today is upward movement.
Resistance levels: 52.00, 53.10, 54.00
Support levels: 50.52, 49.75, 49.00.
The main scenario - an increase towards the level of 52.00.
An alternative scenario - a consolidation below the mark of 50.25 and a decline towards 49.75.
The fundamental outlook is moderately positive. Within the daily framework, we consider longs with very moderate risks from the level of 50.25.
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