WTI crude oil prices fell to an 18-year low on Friday. Price action settled near 18.44, after briefly slipping to 17.41 on an intraday basis.
The current price level marks a retest of a multi-year support level. Crude oil posted a low near 18.44 in December 2001.
The Stochastics oscillator is, however, signaling a bullish divergence.
But for this divergence to be valid, crude oil needs to close above 20.50.
This will be followed by a retest of the 28.43 level where the next resistance level sits.