Crude Oil Trades The Harmonic Pattern - Wait for Bullish Crossover - Forex News by FX Leaders

Crude Oil Trades The Harmonic Pattern – Wait for Bullish Crossover

Posted Wednesday, January 17, 2018 by
Arslan Butt • 1 min read

Good afternoon, folks. WTI Crude Oil is still supported by the OPEC-led production cuts and strong global demand. Lately, the commodity has dropped in the wake of profit taking and it seems like a good opportunity to buy it back.

WTI Crude Oil – Technical Review  

Technically, the Oil is trading in a bullish mode. You can see on the chart below, the Oil is trading below the 50- periods EMA which is providing a solid resistance at $63.90.

WTI Crude Oil - 30 Min - Chart

WTI Crude Oil – 30 Min – Chart

Crude has also formed a bullish harmonic pattern which is underpinning the Oil at $63.50 and $63. But what I’m focusing on right now is the 50- periods EMA. We can’t go long unless Oil gives us a bullish crossover above $63.90

Support     Resistance

63.49          64.53

63.16          64.86

62.64          65.38

Key Trading Level:    64.01

WTI Crude Oil – Trading Plan

The idea is to stay bearish below $64 with a stop above $54.35 and a take profit of $63.35. Whereas, above $64.15 the Oil has a potential to go after $64.65.  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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