West Texas Intermediate Crude Oil Going Into 2020
- Crude oil at the top of range
- Recent “golden cross”
- OPEC production cuts
- Global demand questionable
The West Texas Intermediate Crude Oil market has fallen slightly during New Year’s Eve trading. At this point, it should be kept in mind that the volumes will be extraordinarily low. There have been a multitude of headlines when it comes to the crude oil markets as of late. Therefore, it is worth paying attention to on multiple levels as the crude oil sector reflects what’s going on in the rest of the world.
Technical Analysis intermediate crude oil Texas
The technical analysis for the West Texas Intermediate Crude Oil market is interesting. There is a larger consolidation area that currently trades between the $62.50 level on the top and the $52.50 level on the bottom. Perhaps this is best thought of as a large zone that has wide support and resistance zones enclosing trading. This is a market that does look relatively bullish but is starting to get a bit close to selling pressure.
The market has a lot of different things going on at the same time. The resistance at the $62.50 level probably extends to the $65 level. On the bottom, the $52.50 level underneath will more than likely see support extending down to the $50.00 level underneath.
Throughout the next couple of days, the volume will likely be a bit thin. At this point, there are decisions to be made. It is more likely that this pair will pull back more than anything else, reaching down towards the $60 level. The question for the year 2020 is whether or not it can break out of this range.
Decision to be made for 2020
Looking at the upcoming year, there are a lot of decisions to be made. The recent production cuts by OPEC will have a bit of an effect on crude oil markets. The question now is whether or not the Americans will cut back production as well. With oil prices being a bit higher that seems very unlikely. The oversupply that continues to come out of both the United States and Canada will more than likely continue to keep a lid on this market.
It looks like $65 will probably be difficult to break and there is even resistance at the $70 level based upon longer-term charts. With that being the case, there will likely be an expansion of the overall consolidation for the year, with the $50 level underneath being support and the resistance being near $70.