Oil gains support…Is it the right time to buy?

Arslan Butt•Friday, July 21, 2017•1 min read

The black crack has remained unchanged after falling dramatically in the New York session. But now, it has again entered its previous narrow trading range of $46 – $47.15.

It's likely to stay muted due to the upcoming meeting of major oil producing countries next week. Remember a few days back we discussed the long term trading range of crude oil ($44 to $47). It's already been breached due to the Energy Information Administration (EIA) inventories, which counted a draw of about 4.73 million barrels following a draw of 7.6 million barrels this past week.

Crude Oil – 4-Hour Chart

Zooming out to the 4 -hour timeframe, we can see the crude oil consolidating right above $46.75, the immediate support level for now. A break below this level is likely to push the oil deeper to $46.35. Above this line of 46.75 support, the market has the potential to go for $47.35.

Looking at the 50- periods moving average, the oil is trending bullish but there is a chance of a retracement as well.

WTI Crude OIl – Trade Plan

Today the market is likely to exhibit choppy session, therefore, we should wait for the market to test $46.65 before entering. On the higher side, we can try selling at $47.30.

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

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.