- Yesterday, crude prices recorded a 18-year low at $20.08
- “Crude was wildly oversold,” claims an analyst
- The price is now testing the near-term resistance
Crude oil prices are currently trading 24% higher as the “black gold” races to post the best day ever following weeks of heavy losses.
The commodity lost nearly 17% yesterday when it traded at the lowest level since 2002. Crude has been boosted by strong actions from the central banks worldwide to support the economies and business activity.
“Crude was wildly oversold, with a Relative Strength Index which got below 14, the lowest I’ve ever seen for any commodity, and we’ve now decided that maybe the global economy isn’t going to come to an end,” Scott Nations, president and chief investment officer at NationsShares said.
Technically, the price action has rotated higher to retest the broken support, now resistance. A move above $27 – $30 zone may pave the way for a trip to the crucial level for crude at $42.