Fundamentals Boost WTI Crude Oil Demand- Ready for Trade? - Forex News by FX Leaders

Fundamentals Boost WTI Crude Oil Demand- Ready for Trade?

Posted Monday, October 16, 2017 by
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.

 

Technicals View

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 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.  

 
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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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