US West Texas Intermediate crude oil futures ended higher on Monday, but trade was mostly mixed. Helping to lower prices was the news that Saudi Arabia would voluntarily deepen oil production cuts from June as low oil prices are causing huge pain in the state budget. However, concerns over weak global demand were limited due to the lockdown to prevent coronavirus pandemic.
Daily Swing Chart Technical Analysis
The main trend is below, according to the daily swing chart. A trade through 2117 will change the main trend. A step through the final main floor at 795 would indicate the resumption of the downtrend.
The 2040 drop-in last week’s closing price stalled some momentum that had been developing over the past two days.
The intermediate-range is 2117 to 795. Its retention zone resistance is 2185 to 2060.
The short-term range is 1560 to 2080. Its retracement level at 1600 is the next possible downside.
Short term outlook
A continued seller pressure is appearing below 50ema, and targeting 1600 if the price breaks the level of 1600 next targeting to 950 level.
After bottoming 795 oil price correcting according to the weekly chart and forming a hammer pattern and confirming by a bullish candle. if price break the level 2100 next target will be 2500 which is resisted by a 20 ema