Retracement In The WTI Crude Oil – Wait For A Buy Entry! - Forex News by FX Leaders

Retracement In The WTI Crude Oil – Wait For A Buy Entry!

Posted Thursday, June 15, 2017 by
Arslan Butt • 1 min read

There was such a drastic response to the EIA Crude Oil Inventories figures which were released in the US trading session on Wednesday. Earlier in the European session, our live market update Top 3 Things Impacting The WTI Crude Oil Today! suggested staying in selling below $45.85. Honestly, I wasn't expecting the massive drop of more than 190 pips as a response to the economic news.

The Energy Information Administration (EIA) revealed a draw in inventories of 1.66 million barrels over the previous week. However, the drop was lower than anticipated. Despite this, it failed to extend support to crude oil prices. On the contrary, it fell massively.

In addition, we can't ignore the consumer price index by the world's top oil consumer. The index missed the mark and dipped by 0.1% instead of placing 0.2% gains. Moreover, the retail sales slid 0.3% in the month of May rather than the forecasted 0.1% uptick. Consequently, investors traded the sentiment of low demand for crude oil in the future.

Crude Oil - Daily Chart

Crude Oil – Daily Chart 

Forex Trade Signal – Idea

Today, we need to monitor $44.40 as selling is advised below this level, with a target of $43.75. I would like to enter a buy position there with a stop loss below $43.50.

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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.
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