WTI Crude Oil Completes 61.8% Retracement – What’s Next? - Forex News by FX Leaders

WTI Crude Oil Completes 61.8% Retracement – What’s Next?

Posted Monday, May 29, 2017 by
Arslan Butt • 1 min read

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 ChartCrude 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.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of