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WTI Crude Oil Finally Breaks A Major Support

Today in the European trading session, the black gold, crude oil was trading slightly bullish at $50.60, right above a major support level of $50.45. The RSI was in support along with the 50 periods EMA. That’s why I preferred to enter a trade with a tight stop loss of $50.30. That remained in profit throughout the European sessions, showing us 15 – 18 pips of profit over and over again.

WTI Crude Oil - 4 Hours ChartWTI Crude Oil – 4 Hours Chart

 

However, later in the New York session, the trade was ruined after the release of the ISM Manufacturing Index from the United States, the top consumer of crude oil. The figure dropped slightly from 57.7 last month to 57.2, though the new figure did meet the expectated 57.02

As discussed in my previous update, the United States is the biggest oil consumer in the world. So, the slow manufacturing increases belief that we may see less demand for crude oil in the future. That's why the release of bad manufacturing PMI figures lead to a sudden drop in crude oil and unfortunately took our stop-loss as well.

Fellows, I am hoping that you trail your stop-loss to the breakeven levels once the trade comes in profit. It keeps us safe from sudden reversals.  

Stay Safe, Trade Rationally!

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Arslan Butt
Index & Commodity Analyst
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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