Oil gains support…Is it the right time to buy? - Forex News by FX Leaders

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

Posted Friday, July 21, 2017 by
Arslan Butt • 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 Hours ChartCrude 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. 
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