WTI Crude Oil Breakout Sideway – Trump Behind It!

It’s been a volatile session for crude oil as it’s continuously trading bullish, near 3/2-year highs after President Donald Trump pulled the U.S. out of an international nuclear deal with Iran. Thereby, sparking anxieties about a fresh tension in the Middle East and global oil supplies.

By the way, if you are wondering what Iran has to do with crude oil prices, I would like to add, Iran is the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and the main supplier, particularly to refiners in Asia.

In response, Asia’s petroleum refiners are struggling to locate alternative supplies in order to cope with the renewed U.S. sanctions against Iran.  I hope the picture is clear to you now, so let’s speak about the technical drivers.

Crude oil finally has come out of the sideways range ($67 – $69) after bullish fundamentals. The $69.40 level was working as a resistance but since it has already violated now, the same level will be a support. Oil is likely to target $71.75 now. Looking at the RSI, it’s about to cross above 50, which will be another motivation for buyers.

WTI Crude Oil – Trade Idea

It will be nice to stay bullish above $70.55 with a stop below $70 and a take profit at $71.75. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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