A Technical Breakout In WTI Crude Oil – EIA Inventories Ahead!
Today, the crude oil is trending below $48.35, the major resistance level. Previously, the WTI crude was trading in a symmetrical triangle pattern which can be seen in the 4-hour chart. The triangle extended a significant support at $46.95 and resistance at $48 to the crude oil.
Yesterday in the New York session, the oil broke out of the Symmetrical Triangle on the upside at $48. The breakage of $48 is supposed to give a bullish momentum to the oil price until it tests the next resistance at $48.70. The crude oil prices have also crossed above the 50- periods EMA at $47.50, which is sharing another bullish signal.
Based on the technicals, we shared a forex trading signal to place a buying position somewhere around $48, with a stop loss below $47.80 and a take profit at $48.35.
The trading signal is consolidating in the profits and loss due to a lack of significant market movement. However, the fresh American Petroleum Institute (API) inventory report for the previous week revealed a draw of 4.62 million barrels which is quite low compared to 8.7 million barrels last week.
The lower draw in inventories increases the supply of crude oil in the market, which ultimately impacts the oil prices. Fingers crossed for the Crude Oil Inventories which are due to release today at 14:30 GMT.
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