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Commodities: Major Levels To Watch On WTI Crude Oil

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Crude oil continues to collapse, approaching $20 per barrel. A price war between Russia and Saudi Arabia timed perfectly with the COVID-19 pandemic has crushed oil to levels not seen since early 2000. Based on key technical chart levels, oil will find support at $17.50 and then $11.85. Oil will likely hit $17.50 but the $11.85 only gets tagged if we enter an all out global depression. At that point, the bankruptcies and job losses will mirror the 1930, and none of us want to see that. I believe the odds of that worst case scenario happening are very low, but should be taken into account.

The $17.85/bbl level will likely be a major low if the worst case scenario does not come to pass. There is also a key point where Saudi Arabia and Russia feel max pain and will have to work together to raise the price of oil to keep from economic collapse. My guess that will be the $17.85 level.

As an investor, accumulating best of breed oil stocks on as oil moves below $20/bbl will be scary but likely pay off in a big way over the next 12 months. Names like Chevron (CVX) and Exxon Mobil (XOM) are likely where you want to head.

Check out the chart here... https://inthemoneystocks.com/major-levels-to-watch-on-wti-crude-oil/

Gareth Soloway
Chief Market Strategist

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