WTI stopped perfectly at the hourly trendline following the Saudi export announcement

• WTI is trading 0.59% higher on Tuesday but dropped from the early session highs. 
• Saudi Arabian exports have fallen to their lowest levels in 35 years according to reports.

WTI 1-hour chart

WTI has been trading higher in line with the general risk-tone in the markets today. There have been some blips from news headlines as China announced another lockdown in Beijing following a potential second wave of the coronavirus. There was also the story mentioned above (bullets) where Saudi Arabian crude oil exports reached a 35 year low due to the COVID pandemic.

Looking closer at the chart now and the price seemed to stop perfectly at the trendline resistance. It looked like the price was about to break the zone to the upside but it was testing close to the time the Saudi news broke. Now it seems the price has bounced off the level and is currently looking to test the support zone at USD 37.26 per barrel to the downside. 

The technical indicators have thrown up some interesting points too. The MACD has a circle around it and this is where the signal lines are currently crossing over and the histogram is turning red. The Relative Strength Index is grappling with the 50 mid-point at the moment too and a break to the downside could confirm more weakness. 

On the daily chart yesterday (not in the article), there was a shooting star-like candle which does sometimes indicate that more bearishness is to come but overall the trend is still an uptrend as the market has been making higher highs and higher lows on the daily timeframe. So in this case watch out for a retracement.

Additional levels