Crude Oil Trades The Harmonic Pattern – Wait for Bullish Crossover

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

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!