Oil prices are falling sharply while equity markets are rising in parallel, following Russia's announcement that some troops are returning to their bases.
WTI was negatively affected as it had made gains in the face of escalating tensions between Russia and Ukraine. The slightest chance of a conflict could affect the strength of crude and push the price towards the 85.00 support level.
Crude oil price is making a correction after reaching a high of 95.78. It is currently trading above the 21 SMA and bearish pressure is likely to continue towards the bottom of the uptrend channel formed since December 2021.
A technical bounce around the uptrend channel will give us the opportunity to buy crude again above the psychological level of 90.50. Conversely, in case of a break below the key level of 90.00, we could expect a drop towards the 200 EMA located at 85.61.
Below 90.00 will be a good opportunity to sell crude with targets towards 93.25 and 85.60. A daily close below the 21 SMA could be a sign of a trend reversal and the start of a short-term bearish sequence.
Our trading plan for the next few hours is to wait for a technical bounce around the 90.50 level. It will be an opportunity to buy with targets at 92.50 (SMA 21) and up to the all-time high of 95.78.
Support and Resistance Levels for February 15 - 16, 2022
Resistance (3) 96.13
Resistance (2) 93.75
Resistance (1) 92.27
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Support (1) 90.52
Support (2) 87.50
Support (3) 86.04
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