WTI Crude Oil-Key Support Levels - Forex News by FX Leaders

WTI Crude Oil-Key Support Levels

Posted Monday, December 4, 2017 by
Shain Vernier • 1 min read

WTI crude oil is entering a consolidation phase with price rotating inside of Friday’s range. Last Thursday’s announcement of OPEC production cuts lasting throughout 2018 have created bullish sentiment. The supply concerns have supported price and may fuel a late-year rally. Currently, we are seeing crude oil trade near the $57.75 mark.

January WTI futures have traded over 300,000 contracts for the early session. A depressed range of 86 ticks is almost certain to be extended.

WTI Crude Technical Outlook

Today’s red candle is a welcomed sight to U.S. consumers. The equities bubble and pending tax cuts have the potential to bolster energy pricing. Any delay in rising prices garners applause from main street.

WTI Crude OilJanuary WTI Crude Oil Futures, Daily Chart

For now, this market is in heavy rotation. Here are the key levels for the remainder of the U.S. session:

  • Resistance(1): Swing high, $59.05

  • Resistance(2): Psyche level, $60.00

  • Support(1): 20 Day EMA, $56.96

  • Support(2): Daily SMA, $56.68

  • Support(3): Bollinger MP, $56.60

Bottom Line: In the event that we see a move under Friday’s low of $57.29, longs from the Daily SMA($56.68) area are optimal. A 1:1 R/R long from $56.76 with a stop at $56.49 yields a return of 27 ticks.

As always, trade smart and for tomorrow!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of