Top Two Reasons of Bearish WTI Crude Oil
Oil traded as we forecasted in our earlier forecast Trade Setup In The WTI Crude Oil - Sideways Channel Still Alive. But the drop in Crude
Oil traded as we forecasted in our earlier forecast Trade Setup In The WTI Crude Oil – Sideways Channel Still Alive. But the drop in Crude Oil was massive and uncertain. Today, I think we will have another good opportunity it Crude Oil. Let's take a look.
Reasons Behind a Sell-off
Firstly as per Iraq, their exports lifted slightly in the month of September, particularly from their southern oil fields. Increase in exports indicates the increased supply of Crude Oil in the market. Here applies the Law of Supply: The increased supply and stable demand result in fall in prices of things. That's exactly what happened to Crude Oil a day before.
Secondly, do you remember the crude oil trading range of $51.40 -$52.30? It's violated over fundamentals release, and investors jumped to trade the breakout. As of now, I see an immediate support at $50.10 and a solid resistance is found at $50.75.
Crude Oil – 4 – Hour Chart – Range Breakout
Crude Oil – 4 – Hour Chart – Range BreakoutThe Oil is oversold, and we need to wait a bit for Oil to pull back until $50.75 before placing any trade. Well, It really doesn't mean that we need to take a buy position now.
WTI Crude Oil – Trading Idea
Today, I will be focusing on $50.75 to enter a sell position below this with a stop loss above $51.10 and a take profit of $50.25. Good luck!
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals