- WTI moves 4.19% lower on Friday and 7.89% lower this week.
- Concerns over demand remain the key issue in the energy markets.
WTI 4-hour chart
Oil prices have broken down once again on Friday as concerns over demand loom. There was also some news overnight that US President Donald Trump has also tested positive for COVID-19. This also put pressure on the energy market as fears of another lockdown increase.
Looking at the chart, the next wave low could be very important. If the price breaks USD 36.40 per barrel when it would create a new lower high lower low pattern and the next support is lower down at the purple line just below USD 35 per barrel.
The indicators are still very bearish. The Relative Strength Index is hugging the oversold level and has been depressed for some time. The MACD is also very bearish as the signal lines are under zero and the histogram is also in the red.
Overall this looks like a decent trend change. The next confirmation will come if the purple support level is broken to the downside. There is always the possibility that the OPEC+ group may act again but for now, it seems the demand side has been capped.