WTI Crude Oil – 75 Pips Trade Setup

The crude Oil continues to trade bullish maintaining a broad trading range of $47.20 – $49.35. Trader's focus remains on uncertainty lead by Hurricane Harvey which is causing sharp fluctuations across all metrics. Check out the trade setup below.

EIA Report Update

The latest Energy Information Administration (EIA) data showed an inventory build of 5.9 million barrels for the previous week followed by a build of 4.6 million barrels. It's a slightly bearish news, however, the impact remains bullish.  

Technicals Outlook

On the 4-hour chart, Oil is holding below a solid resistance level of 49.35 and has formed a bearish engulfing candle which is the first selling signal for us. The 50- periods EMA is near $48.35, suggesting a bullish trend in Oil. The prices are far away from their average prices, and it should pull back to the $48 zone before taking further buy.

Crude Oil – Double Top Pattern 

Oil has a formed a double top pattern at $49.35, and candles closing below it is strengthening the bearish sentiment. Lastly, the leading indicators are stuck in an overbought region and suggesting we may get retracement in Oil up to $48.78 (23.6%) and $48.45 (38.2%).

Crude Oil Trading Plan

Today, we need to monitor the key trading level of $49.35. Anything below that the market is likely to stay bearish until $48.75 and $48.15. The breakage above $49.40 can give us a buying opportunity until $48.75. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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