A Trade Setup On WTI Crude Oil For Today! - Forex News by FX Leaders

A Trade Setup On WTI Crude Oil For Today!

Posted Thursday, October 12, 2017 by
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 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!

 
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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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