WTI Crude Oil: oil prices consolidate

Current trend

Oil prices show flat trading dynamics, trading near the level of $37 per barrel. The weakness of USD, which is again fixed on almost the entire spectrum of the market, does not allow the instrument to recover, as prices are still under the pressure of uncertainty in the global economy. Also, investors react negatively to reports that Libya intends to resume oil production, which could have a devastating effect on the fragile balance of global supply and demand. Earlier, OPEC said that oil demand will decrease by 9.46 million barrels per day this year, which is much worse than previous estimates.

On Tuesday, traders wait for a block of US statistics on the dynamics of industrial production and the report of the American Petroleum Institute on oil reserves for the week of September 11. The previous data reflected an increase of 2.97 million barrels.

Support and resistance

On the daily chart, Bollinger bands moderately decline. The price range narrows slightly, remaining spacious enough for the current level of market activity. MACD tries trying to reverse upwards; however, it keeps the sell signal (the histogram is below the signal line). Stochastic grows more actively but now its dynamics is weakly correlated with the real situation on the market.

To open new trading positions, it is better to wait for the signals from technical indicators to be clarified.

Resistance levels: 38.00, 38.41, 39.31, 40.00.

Support levels: 36.75, 36.00, 35.00.

Trading tips

Long positions may be opened after the breakout of 38.00 with the target at 40.00. Stop loss – 36.75.

Short positions may be opened after the breakdown of 36.75 with the target at 35.00. Stop loss – 38.00.

Implementation period: 2–3 days.