WTI Crude Oil-Key Support Levels

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.

January 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!