Retracement In Crude Oil - Let's Cash It! - Forex News by FX Leaders

Retracement In Crude Oil – Let’s Cash It!

Posted Thursday, November 16, 2017 by
Arslan Butt • 1 min read

The fundamental side of Crude Oil isn't offering anything exciting to trade. But, the technical side is forming a trade setup for us. Let's check this out.  

 

WTI Crude Oil – Technical Outlook

While exporting the 4-hour chart of Crude Oil, I spotted the major support area at $55. That's exactly the same level where Crude Oil was facing resistance in the past. But for now, it's likely to work as a support.

 

For the moment, the Crude Oil is coming out of the oversold, and it's very likely to retrace back especially after the formation of several doji candles. The doji candles followed by sharp bearish trends signifies the potential for a reversal.

Crude Oil - 4 - Hour Chart Crude Oil – 4 – Hour Chart 

I just applied a Fibonacci retracement indicator on the 4- hour chart. The 23.6% retracement remains at $55.60 while 32.85% retracements stays at $56.04.

 

Crude Oil Trading Plan

I'm looking to stay bullish above $55 with a stop loss below $54.75 to target $55.60 and $56.05. Keep following us for further updates on it. 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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