Feb. 19, 2021
Starting at $60.52 Crude oil closed at $59 after making its biggest single-day drop ($1.51) since December 2020
This downslide might be related to financial indicators data published earlier as United States Crude Oil Inventories published yesterday at 4:00 PM came out at -7.26 million, falling short of the -2.43 million projections and continuing its decline from the previous -6.64 million figure. The United States Philadelphia Fed Manufacturing Index (Feb) released yesterday at 1:30 PM is better than expected at 23.1 but down from preceding data of 26.5 according to new data. United States Initial Jobless Claims fell short of the 765,000 projections, at 861,000 and continued its downward trajectory from the previous figure of 848,000.
The Chart visual study suggests Oil's nearest support level is at $53.21, followed by $52 at the next level. In terms of trend indicators, we can see that at $59.2, Crude made an initial breakout below the 10 day Simple Moving Average, an indication of a negative trend. Medium-term trend indication has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line crosses below the MACD signal line.
Overall, looking at the technical analysis landscape, it seems Crude is likely to continue pointing down in the short term.
Taking a wider perspective, performance of these other symbols usually suggests a setback for oil, as EUR/AUD is trading around 1.5395 after starting the session at 1.556 (down 165 pips). The EUR/NZD is down 141 pips from the beginning of the session and now trading around 1.6746.
Positive performance can be seen looking at other symbols, as the Aussie/Dollar is trading around 0.7872 after starting the session at 0.7773 (up 1.27%). The New-Zealand Dollar gained 1.06%, currently at 0.73
Crude social media highlights: