Potential 100 Pips Trade Setup In WTI Crude Oil! - Forex News by FX Leaders

Potential 100 Pips Trade Setup In WTI Crude Oil!

Posted Monday, August 21, 2017 by
Arslan Butt • 1 min read

While looking at the commodities market this morning, I found another exciting trade setup in WTI Crude Oil with the potential to give us almost 100 pips.

WTI crude oil had bullish movement on Friday, perhaps due to sweakness in the US dollar. As expected, the FOMC failed to provide support to the Buck, and ultimately the gold. WTI Crude Oil and other related commodities took a sharp bullish turn.

The WTI Crude Oil is now trading at 48.65. This seems to be an area where sellers can dominate the market. The reason I'm favoring sell today is purely due to technical setup. On the 4-hour chart, we can see a candlestick pattern shooting star, which signifies a potential bearish reversal.

Crude Oil - 4 Hour Chart - Bearish SetupCrude Oil – 4-Hour Chart – Bearish Setup

Crude Oil prices are approaching the long-term resistance level of $48.90 and we can expect oil to fall below it. Stochastic RSI is massively overbought and supporting the bearish sentiment today.

Crude Oil Trading Plan

Today, I'm looking to stay in sell below $48.75 with a stop at $49.30 and a take profit at $47.75 & second take profit at $47. Make sure to trail your stops at break even once the trade shows green pips. Good luck

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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