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