Over the previous week, the WTI Crude Oil prices fell dramatically following the OPEC decision to extend production cuts. The crude oil was supposed to skyrocket upon the announcement, but the impact went in exactly the opposite direction.
The bearish momentum in the oil was triggered because the announcement failed to surprise investors. The outcome was as expected and investors responded with aggressive selling for more than 350 pips. The WTI Crude Oil found a support on Friday and recovered nearly 45% of the losses.
Forex Trading Signal
At this point, we have 2 options for today:
First- Buying above $49.60 with a stop loss below $49.50 and a take profit of $50 (psychological level).
Second – Selling below $49.45 with a stop loss above 49.70 and a take profit of $49.10.
Crude Oil – Hourly Chart
Technical Outlook- Intraday
During the early European session, we shared a buying call above $49.75 as the pair broke above the 50 periods EMA and the leading indicator crossed above 50. The trade was floating in profit, but now it's again floating in the loss.
Both of the technical tools recommended a bullish bias for the pair. Now, let's see, how the oil responseds to the technical analysis.
On the 4 – hour chart, we can see that the scenario is opposite. The oil has completed 61.8% Fibonacci retracement which is keeping the oil prices below $50.025.
Since the global markets are closed in observance of Memorial Day. Thereby, we may experience a thin trading volume.