Crude Oil Peaking Out Of Trading Range – Get Ready To Sell
WTI Crude Oil is consolidating in the tight trading range of $46.75 – $47.25, as yesterday the market closed early due to Independence Day. This caused the trading volume to remain quite thin and our forex trading signal kept floating in profits and losses overnight.
On Tuesday, the oil prices continued to climb higher throughout the European session. This was due to an unexpectedly strong release from the US ISM manufacturing index. This had a big impact in raising confidence in US oil demand.
Today, the crude oil's bullish momentum seems shaky not only due to fundamental events but also due to technicals. Let's take a look at the trading signals.
Forex Trade Signal – Idea
Investors are recommended to watch $46.75 closely, looking to have a sell position below this level with a target of $46.40.
Crude Oil – Sideways Trend – 4-Hour Chart
Technical Outlook
By looking at the daily chart, we can see that the oil is holding right below 50-periods EMA which is extending a solid resistance at $47. To understand more about the moving averages, read our excellent trade strategy here.
The technical indicator Stochastic is trading in the overbought region, demonstrating investors' intention to take profit. For now, the major resistance is found at $47, while the support prevails at $46.75. Breakage of the support is likely to push the market deeper towards $46.45.
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