A Trade Setup On WTI Crude Oil For Today!
Arslan Butt • 1 min read
Yesterday, the Crude Oil traded in line with our forecast suggested on Crude Oil Bullish Wave Halts – API Report Awaited. Did you miss this opportunity? No worries, here is another one for today.
WTI Crude Oil – Fundamentals Analysis
The API (American Petroleum Institute) reported that the oil stocks rose a more-than-expected 3.097 million barrels at the end of last week. This means, the demand for Oil dropped. Perhaps, it's due to Chinese holidays or the hurricane in the United States. Anyhow, both of these situations are not there anymore. China is back and the refineries in the Texas are recovering from the hurricane. In the next week, we can expect a draw in inventories.
EIA Weekly Crude Oil Stock
Today at 15:00, the EIA (Energy Information Administration) will be releasing the Crude Oil inventories report for the previous week. It's expected to show a draw of -1.9M barrels, but in my opinion, we will see a build in inventories. The reason is same, China market was off due to holidays and echoes of the hurricane. Refer to FX Leader News Trading Strategy to ensure profitability.
WTI Crude Oil – 4 – Hour Chart
Crude Oil – Trading Plan
Today, the $50.75 is a very solid level for Crude Oil and on the upper side, $51.40 is a strong resistance. Before the news, it will be nice to stay bearish below $51.40 and bullish above $50.75 with a small stop loss of 20-25 pips. After the news, the Oil will determine it's further trend for the whole week. Good luck!