Fundamentals Boost WTI Crude Oil Demand- Ready for Trade?
Arslan Butt • 1 min read
This morning, the Crude Oil soared to cross above a solid resistance level of $51.45. Yup, this remained the most monitored trading level in the previous week. Now, as the Oil has entered the new region, let's jump in to encash another hot trade setup.
Fundamentals Overview – WTI Crude Oil
The reason why Crude Oil went bullish this morning is the conflicts between Iraq and the US. The Iraqi forces took control of vast areas in Kirkuk without resistance from Kurdish Peshmerga. The news came after rumors that Iraqi forces started moving at midnight toward a major airbase located in the west of the city.
In response, the investors are expecting the US to speak up with some additional sanctions on Iraq. Since, the Iraq is the second biggest oil producer within the Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia, the Crude Oil prices are supported.
On the other hand, the technicals side is also supporting the bullish sentiment of investors. For instance, checking out the 4- hour chart, we can see a bullish crossover at $51.45. Unfortunately, we missed this entry as this came as soon as the market opened but we still have a chance to buy on the dip.
Crude Oil – 4 Hour Chart – Bullish Breakout
For now, $51.45 is working as a support area. Whereas, the resistance prevails at $52.40.
Crude Oil Trading Plan
Today, I'm planning a bullish entry above $51.40 with a stop below $51.05 and a take profit at $52.35. Good luck and have an awesome week ahead.