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