WTI Crude Oil Futures fell about -5% intraday but recovered to about -3% by end of day. And their correction has restarted today, and they are down about -4.65% currently. The short term trend is down, but its looking due for reversal.
The setup becomes weak below $40 per barrel, and the same weakness is playing out again. However, $35-36 are strong support levels and they are unlikely to break, so the current weakness can be used for buying with $36 as stop loss. We can expect a retest of $38-39 levels in the coming week, so those can be the targets. Summary of the trade setup for Crude Oil Traders: Aim to stay long above $36 for target $39.
The above chart is of WTI Crude Oil futures (July 2020 contract). All traders should move into July contracts asap because June contracts are nearing expiry this week.
Crude Oil futures maybe breaking out of their strong parabolic uptrend from the deep sell-off seen on April 21, 2020 and they can also move up till 27-28 as part of this uptrend.
There is a strong support at $19 per barrel. Traders can stay long above 19 for Target 30. Buy on corrections. A closing below 19 will create fresh selling pressure and weakness that can drag down the price till 12-13 level, where we have seen major support, and strong buying on 3 different days during April 2020.