The WTI Crude Oil is trading neutrally with no major price fluctuations. Overall, the black gold is stuck near a multi-week high. In my opinion, the investors are "pricing in" the upcoming OPEC meeting, that is expected to discuss extending the production cut. The idea is to reduce the supply in the market to accommodate falling oil prices.
Right now, for crude oil, the most highlighted event is the OPEC meeting and the most likely outcome is production cuts for another 9 months, until March 2018.
Most importantly, U.S. President Trump plans to sell half of the country's massive oil stock. The idea is to sell 688 million barrels of oil stock from 2018 to 2027 with the goal to raise $16.5 billion. If this happens, the oil prices will fall dramatically due to weaker demand and a heavy oil supply.
Forex Trading Signal
We can take up a buy position only above $50.40 with a stop loss below $50.30 and a take profit at $51.20.
WTI Crude Oil – Gap In The Hourly Chart
Technical Outlook- Intraday
On Monday, the market opened with a huge gap, as we can see on the crude oil's hourly chart. It closed at $50.415 but later opened at $51.230, demonstrating investors' bullish bias.
Nonetheless, it has made its move downward to fill the gap at $50.40 and that's the point where we can take our buy entry. In case the market does drop below this level, the prices will fall to $49.70
In my opinion, we are not likely to see a trend continuation until the market receives the outcome of the OPEC meeting this week.
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