Crude oil prices took a hit on Monday the 13th as fears of a new financial crisis hit following the recent data of the Silicon Valley Bank(SVB) collapse. This is not the only bank that failed since Silvergate announced plans to wind down operations and voluntarily liquidate as well as state regulators closed New York-based Signature Bank(SBNY.O) on Sunday. U.S. authorities launched emergency measures on Sunday to shore up confidence in the banking system.
The price of crude oil was only supported slightly from recovery in Chinese demand for the commodity while important economic data coming from the USA this week will have an effect on the price in the following sessions since inflation rate and PPI are expected to increase volatility in the market.
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.
The price of crude oil was only supported slightly from recovery in Chinese demand for the commodity while important economic data coming from the USA this week will have an effect on the price in the following sessions since inflation rate and PPI are expected to increase volatility in the market.
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.