FxWirePro: US Oil Short-term outlook

WTI crude oil has halted its 3-months of major sell-off and shown a minor recovery. The commodity was one of the worst-performing asset classes this year and lost more than 65% and hits the lowest level since 2002. The massive decline was mainly due to coronavirus, a price war between Saudi and non-OPEC leader Russia. It hits low of $20.08 and currently trading around $28.25.

Technically, the US oil is facing secondary resistance at $30.15 and any violation beyond targets $32/$34/36.28. Minor trend reversal only above $36.50.

On the flip side, near term support is around $28 and break below will drag the commodity down till $26/$25.

It is good to buy on dips around $28 with SL around $26 for the TP of $36.