Quick Trade – WTI Crude Oil Retesting 61.8% FIbo Level
Arslan Butt • 1 min read
Good afternoon! I hope you enjoyed our forex trading signal on GBPJPY which we recommended in Our Trading Signal On GBPJPY. The global markets are trading sideways yet we are striving our best to secure profits for you. I see an opportunity in Crude. Let's check it out.
API Inventories Report
Most of the investors are awaiting weekly Crude Oil Stock reports. The American Petroleum Institute is scheduled to release the report at 21:35 (GMT).
What to Expect?
Last week, the report showed a build of 6.513M barrels in inventories. I can't see any forecast on the calendar, but a guess is the inventories should fall after Saudi Arabia's issue. The issue caused spikes in prices, and it should have increasing demands as well. Bullish waves can be seen on the release.
Technical View – WTI Crude Oil
The overbought Crude Oil has just tested 61.8% Fibonacci retracement level at $56.80 on the 4-hour chart. If you are not familiar with the Fibonacci retracement, please check out FX Leaders Fibonacci Trading Strategy.
Crude Oil – 4-Hour Chart – 61.8% Fibo Level
Earlier, the Crude Oil tested the same level ($56.85) and that's making it a double top pattern. As we know, the market is supposed to reverse on double top patterns.
Crude Oil Trading Plan
For the reasons discussed, we shared a signal to open a sell position below $56.80 with a stop above $57 and take profit at $56.45. Be careful with the news, and it's better to close position ahead of the release of the news today. Good luck!