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WTI Crude Oil Prices Remain under Pressure
4/20/2023 11:16 AMDuring the Asian session, WTI Crude Oil prices are moderately declining, developing a strong downtrend that formed at the beginning of the week and testing 78.20.
The negative dynamics are developing under the pressure of growing fears about the emergence of a recession in the global economy. Also, markets are reacting to another attempt to strengthen the US currency yesterday, the US Federal Reserve meeting, at which, as expected, the regulator will decide on another increase in interest rates by 25 basis points.
On the other hand, quotes are supported by positive data from China: Q1 gross domestic product (GDP) increased by 2.2% after zero dynamics in the previous period, and YoY – from 2.9% to 4.5% with the forecast about growth to 4.0%. Industrial output corrected from 2.4% to 3.9%, almost in line with expectations of 4.0%. Also, a report from the Energy Information Administration of the US Department of Energy (EIA), published yesterday, reflected a sharp drop in oil reserves for the week of April 14 by 4.581M barrels after an increase of 0.597M barrels earlier. Analysts were counting on the appearance of negative dynamics but only in the amount of –1.088M barrels.
On the daily chart, Bollinger bands gradually reverse into a horizontal plane: the price range is still narrowing, reflecting the emergence of ambiguous trading dynamics. The MACD indicator is falling, keeping a relatively strong sell signal (the histogram is below the signal line). Stochastic keeps a confident downward direction but is near its lows, indicating that the instrument may become oversold soon.
Resistance levels: 79.24, 81.00, 83.00, 85.00. | Support levels: 78.00, 76.00, 74.00, 73.00.
