The black gold, crude oil is trading sideways in a narrow trading range of $46 – 46.75. Overall, the demand for oil remains fragile as investors are still concerned about increased supplies in the market. Having said that, earlier this morning, we entered a forex trading signal to open a sell position. The trading signal was doing well in the initial hours, but all of a sudden, the market reversed before hitting our take profit. Consequently, the crude oil closed position at the stop loss.

It seems like traders are hesitant to enter the market before the release of crude oil inventory figures in the New York session at 13:30. That's why we aren't seeing strength in the trend.

Forex Trading Signal

The oil seems totally stuck in the sideways pattern and I'm not seeing any instant trade. However, let's share a trade idea which may help you in the New York session upon the release of Crude Oil Inventories. I will be looking to sell below $46 with a stop loss above $46.35 and a take profit of $45.60.

Crude Oil – Bullish Flag On 4 Hours Chart

Technical Outlook – Intraday

In the 4- hour chart, the commodity has formed a bullish flag pattern. The pattern demonstrates investor's bullish sentiments and is more likely to break upside.

At the moment, the flag is extending resistance at $46.40 and support at $45.85. The stochastic is signaling a slightly bullish trend, whereas, the RSI is bearish.

Additionally, the 50 periods moving average is representing a selling trend in the market. In my opinion, it's better for us to stay out of the trade until the outcome of the crude oil inventory figures to avoid any uncertainty.