Oil gains start to wither, falls back below $23

Technical Analysis

Author: Justin Low | oil

Oil sees earlier gains of around 4% pared for the most part

Oil H1 13-04
Price is now back under $23 amid a gradual fall over the past few hours. The 200-hour MA (blue line) is still keeping any topside price action in-check today as sellers continue to maintain near-term control at the moment.

As mentioned earlier here, the verdict for the latest output cuts deal is that the details don't do much to back up what the headline suggests.

Ultimately, it is still better than nothing I guess. However, it isn't going to lead to any major rallies in oil prices as long as coronavirus developments stay the way they are.

There is further support around $22.20 from the near-term trendline support outlined above before the $22 handle comes into play.

Beyond that, another test of the $20 looks likely but just take note that markets are thin amid the Easter holiday across Europe and Canada later today.

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