Sideways Range of Crude Oil – U.S. Final GDP Ahead!
Arslan Butt • 1 min read
In my previous update on the Crude Oil, I focused on the EIA report. The Crude Oil traded bullish as per our plan, but the move wasn't enough to capture. Today, we are focusing on the Final GDP from world's top Crude Oil consumer as it's going to impact the demand for Crude Oil.
EIA Weekly Crude Oil Stock – Quick Review
As per the Energy Department, the U.S. crude inventories fell 1.8 million barrels versus forecasts for a 3.4 million-barrel build during the previous week. The draw in inventories hikes the prices of Crude Oil and that's what happened yesterday. Since the API report was also similar and was already "Priced In," that's why we have not experienced many gains.
WTI Crude Oil – Technical View
- For the moment, the Crude Oil is stuck in a narrow trading range of $51.46 – $52.25.
- The prices are above 50- periods EMA, which signifies a bullish bias of investors.
Crude Oil – 4 – Hour Chart – Sideways Range
- Stochastics is holding at 17 in the oversold region. It means, sooner or later we are going to see bulls taking control.
- For now, the major resistance is found at $52.30, and the break above is likely to lead the Oil towards $52.70 and $53.10. On the other hand, below $51.40, it has a potential to go for $50.85 and $50.35.
WTI Crude Oil – Trading Plan
Today, $52 is a very crucial trade for Crude Oil and the idea is to stay in sell below this level with a target of $51.35 and a stop above $52.35. While, above $52.40, the trend will be bullish until $52.75.