US OIL technical analysis this week
By Antreas Themistokleous
14 March 2023
Crude oil prices took a hit on Monday 13 March as fears of a new financial crisis hit following the news of the Silicon Valley Bank (SVB) collapse. And this is not the only bank that failed.
Silvergate announced plans to wind down operations and voluntarily liquidate. State regulators closed New York-based Signature Bank (SBNY.O) on Sunday. And US authorities launched emergency measures to shore up confidence in the banking system.
The price of crude oil was only supported slightly by recovery and Chinese demand for the commodity. The announcement of the US inflation rate and PPI this week are expected to increase volatility in the market, which will likely have an impact on price in the following sessions.
On the technical side, the end of the bearish symmetrical triangle is in sight without any clear signal yet as to where the price will head. The Stochastic oscillator is not showing any overbought or oversold levels while the cross of the 50-day moving average above the 100-day moving average gives some indications of bullish momentum.
In any case, the levels of $78 and $74 are strong resistance and support levels respectively with the resistance consisting of the 50 and 100 moving average lines, and the latter consisting of the lower band of the Bollinger bands as well as the lower boundary of the triangle formation.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Antreas Themistokleous is a trading specialist in Exness. He is a Certified Financial Technician since 2018. As a member of the Society of Technical Analysts, Antreas is implementing advanced use of indicators and patterns to conclude in an action plan for different trading strategies.
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