Another Bearish Wave in the WTI!
Dave Green • 1 min read
Morning, traders. Hope you enjoyed the previous trades and analysis. Yesterday, we hit another great shot in WTI, securing us 40 green pips!
At the movement, the Oil is trading slightly bearish at $54.52, after placing a daily high of a $53.66. Yesterday, the crude oil fell dramatically despite the ongoing tensions between the Iran and the U.S as they inflicted further sanctions on Iranian companies in rejoinder to ballistic missile testing by Tehran.
Investors main focus also remains on the Crude Oil Inventories due to release by the Energy Information Administration on Wednesday (15:30 GMT). The analysts are expecting an increase of 2.38 million barrels in the crude oil inventories by the end of last week.
Besides that, technically, the oil has completed a 38.2% Fibonacci retracement in the 1-hour timeframe. Besides that, the chart also demonstrates the bearishness in the WTI. We can notice the spinning top candles below a major level of $53.64, whereas the 20 & 50 EMA's and with the RSI below 50 are pushing the WTI deeper.
Lastly, I would recommend investors to have selling positions below $53.55, aiming the target price of $53.33 while having stops above $53.70.