Bottom line: WTI Crude long term structure continues to remain bullish against $0.01 lows. Over the short term though, the commodity might have carved an intermediary high around $43.75 levels. Bears might remain in control for now and prepare to push through $26.00 mark at least.

 Fundamental Outlook:

DAX had rallied through 12880 highs yesterday, closing +2.36% around 12860 mark. Futures are trading around 12900 as we prepare to publish. Global indices along with Dow Jones and SPX500 managed to close higher by +1.78% and +1.92% respectively. Hopes of another stimulus has triggered the recent rally in risk assets but investors might remain cautious over further optimism.

WTI Crude prices have remained stagnant after hitting $41.46 mark on September 18, 2020. The commodity trades around $40.35 for now and might remain under pressure over the next few weeks. The OPEC might not cut further production but sluggish demand over another round of COVID-19 infections might put pressure on the commodity.

Gold had dropped to $1848 last week, breaking critical support at $1862 mark. The yellow metal might continue to lose its shine as the US Dollar might strengthen further over the next few weeks. The metal has seen some bids coming through around $1850 mark as it trades higher towards $1881 as we prepare to publish today’s update.

Technical Analysis:

WTI Crude had managed to produce a counter trend rally towards $41.46 mark, after having dropped through $36.00 lows earlier. The commodity might have carved another lower high around $41.46 as bears might be preparing to turn lower again. A drop below $36.00 might confirm that bears are prepared to push towards $26.00 levels in the near term.

WTI Crude had dropped through $0.01 historic lows around April 20, 2020. Since then, the commodity had remained in control of bulls and managed to carve a religious uptrend towards $43.75 highs in mid-September. Bears might be inclined to produce a meaningful corrective wave going forward. The drop between $43.75 and $36.00 has also been retraced and bears might resume lower soon.

Also note that the fibonacci 0.618 retracement of the entire rally between $0.01 and $43.75 is seen towards $16.50/60 levels. High probability remains for prices to drop towards those levels, going further. Bulls might want to regain control from around $16.00/50 mark.

Most traders might be preparing to initiate fresh short positions around $40.00/50 resistance zone, with protective stops above $43.75 and projected targets towards $26.00 and $16.00/50 respectively. Only a sustained break above $43.75 might change the near term bearish structure.

Prepared by

Harsh Japee, Technical Analyst.

WTI Crude

Disclaimer:

This market commentary and analysis has been prepared for AT Global Markets UK Ltd (ATFX UK) by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such.

You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

 Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.

The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.

Disclaimer: This article is reproduced from the Internet. If there is any infringement, please contact us to delete it immediately. In addition: This article only represents the personal opinion of the author and has nothing to do with Mato Finance The originality and the text and content stated in this article have not been confirmed by this site. The authenticity, completeness and timeliness of this article and all or part of the content and text are not guaranteed or promised. Please refer to it for reference only Verify the content yourself.

Copyright belongs to the author.
For commercial reprints, please contact the author for authorization. For non-commercial reprints, please indicate the source.

MyFxtops迈投(www.myfxtops.com)-靠谱的外汇跟单社区，免费跟随高手做交易！

免责声明：本文系转载自网络，如有侵犯，请联系我们立即删除，另：本文仅代表作者个人观点，与迈投财经无关。其原创性以及文中陈述文字和内容未经本站证实，对本文以及其中全部或者部分内容、文字的真实性、完整性、及时性本站不作任何保证或承诺，请读者仅作参考，并请自行核实相关内容。

著作权归作者所有。
商业转载请联系作者获得授权，非商业转载请注明出处。