Crude Oil Hit 50 Pips Take Profit – What’s Next?
Arslan Butt • 1 min read
During the New York session, the forex trading signal on Crude Oil closed at taking profit level of $49.75, securing 50 pips for us. Considering the technical analysis, the Oil seems to prepare for another shot. Let's take a look…
Crude Oil – Technical Outlook
We had a bullish breakout in the Oil at $49.40. The bullish move was so sharp to catch, but we were able to capture the selling almost at peak.
As of now, the Oil is still trading at $49.74 (take profit level), and we can see on the 4-hour chart, it's forming a spinning top and Doji candles that signal the neutral sentiment of investors.
Crude Oil -Bullish Channel – 2 Hour Chart
The 50- periods EMA is near $49, suggesting a bullish trend in the Oil. However, the Oil has a support at $49.34. We can also see a minor bullish trend, but it's not strong enough to base our decision on it.
The Stochastic is oversold below 10 and in this situation taking a sell position isn't a good idea. Thereby, we need to look for a buying entry.
Crude Oil Trading Plan
The idea is to wait a bit for Crude Oil to drop at $49.40/35 to take a buying position in order to target $50.30. The market is slow today, but U.S. session may come up with some volatility. Good luck!