CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Chart of the day - OIL.WTI (03.08.2021)

09:17 3 August 2021

Oil prices took a steep dive yesterday in the afternoon, with Brent and WTI dropping more than 3% over 2 hours. There was no clear trigger for the move. Fundamental background for lower oil prices is that rising Delta variant cases will lead to more restrictions and thus have a negative impact on oil demand. Recent news flow from Asia-Pacfic region, especially China and Australia, has been worrying. China imposed restrictions on traveling, parts of Australia have been in lockdown for weeks while hospitals in Japan are severely overwhelmed and remaining bed capacity is extremely low. Question now is whether the virus leads to a similar situation in Europe or the United States. In such case, oil prices could find themselves under even more pressure

Taking a look at WTI (OIL.WTI) from a technical point of view, we can see that price plunged below an important support yesterday - $72.35 area, marked with the lower limit of market geometry and previous price reactions. Downward move was halted at 38.2% retracement of the recent upward impulse ($70.60 area) and commodity has traded sideways since. The aforementioned $72.35 zone is the near-term resistance to watch.

Source: xStation5

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back