WTI Crude Oil – Outlook & Trade Setup
The crude oil prices continued to trade bullishly during the European session yesterday right after breaking above a solid resistance level of $45.05. That's the same level we discussed in our live market update.
One of the reasons behind the fresh wave of bulls was the slump in US production. But, investors ignored the fact that the dip would be short-lived given that it may have triggered due to maintenance in the Alaskan fields.
At the moment, it's trading more technically than fundamentally because investors are likely to wait for the US sessions. Let's take a look at a forex trading signal idea and today's technical outlook.
Forex Trading Signal – Idea
Since the black gold is trading in a narrow trading range, investors are recommended to enjoy the choppy session with a minor stop loss. I advise buying positions only above $45.35 with a take profit at $45.80.
Crude Oil – 30 Mins Chart
Technical Outlook – Intraday
On the 4-hour chart, the oil has formed a bullish trendline, which is extending a significant support at $45. There is also a minor trend line which is gaining strength and providing resistance at $45.25.
Aside from this, we simply can't ignore the double top pattern which is clearly extending a solid resistance at $45.35. On the 4-hour chart, the oil has formed a sort of "Spinning Top" which is signifying investors' neutral sentiment.
Let's wait for the economic events from the US, the world's top oil consumer, in order to determine further trends. Good luck!
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