US West Texas Intermediate (WTI) crude oil futures traded flat in the mid-session after an earlier loss in prices. The market was under pressure from as traders reacted to rising tensions between the United States and China that could put additional pressure on an already strained global economy.
At 15:21 GMT, June WTI crude oil futures are trading down $ 19.70, down $ 0.08 or -0.40%.
Reuters reports that hedge funds and other money managers bought petroleum derivatives last week in the hope that the industry could be the worst point of a coronavirus-induced lockdown.
Currency managers bought the equivalent of 41 million barrels in the six most important petroleum futures and options contracts at the end of the week on April 28, exchange and regulatory records showed.
Purchases were down by 122 million barrels last week, but the fund is now running for five weeks, with total purchases reaching 246 million barrels.
Daily Swing Chart Technical Analysis
The main trend is below according to the daily swing chart. Intensive trading of 1650 will change the main trend upwards. A move through 795 would signal the re-uptake of the uptrend.
The range is 2100 to 795. Its retention zone is currently being tested at 1600. Since the trend is low, the seller may come in the first test of this area. Overtaking this area will reverse it.
Daily Swing Chart Technical Forecast
Based on the initial price action and the current price at 1650, the crude oil market will likely be set in 2100 at the short-term trader’s reaction.
The price is still below the resistance zone 1700 to 1650. if the price does not sustain above the zone we are expecting oil will re-test the level of 950
Oil price running above the EMA 20 which was resistance and expecting to break the zone of 1700. The next resistance is in 2100.