A Potential Buy Entry in WTI Crude Oil – Range Bound Market - Forex News by FX Leaders

A Potential Buy Entry in WTI Crude Oil – Range Bound Market

Posted Monday, August 28, 2017 by
Arslan Butt • 1 min read

During the Asin sessions, the crude oil continued to trade bearish. This is despite the EIA report which showed a draw of 3.3 million barrels though it was supposed to be bullish. What's going on?

According to the Energy Information Administration (EIA) report, it recorded an inventory draw of 3.3 million barrels last week followed by a draw of 8.95 million barrels. The oil was supposed to gain on the news, but it surprisingly fell after pulling slightly higher.

Key Technicals Points

Crude Oil - 2 Hours Chart - Sideways MarketCrude Oil – 2-Hour Chart – Sideways Market

  • On the daily chart, oil has to maintain a sideways trend from $47- $48, forming neutral candles.
  • The 50- periods EMA is near $48, suggesting that the oil prices are far away from their average prices & it should pull back to $48 zone.
  • The double bottom support is at $47 and oil is likely to test the same level again. Therefore, we can see the pull back from here.

Crude Oil Trading Plan

I'm looking to take a buy position at $47 with a target of $47.75 today as the market is facing thin trading volume.

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

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of