Is It Good Time To Go Long on Crude Oil?

WTI Crude Oil finally gained some support as the as worries grew over tensions in the Middle East. Today, the commodity is taking a downturn, but I think it’s  just a correction and we may get a chance to buy the Oil during the US session today…

Fundamental Review

Mounting US production is compensating efforts by the OPEC (Organization of the Petroleum Exporting Countries) as well as some other producers including Russia to restrict production by 1.8M (bpd) until the end of the year 2018. This week, we need to see EIA & API reports to know further about Crude Oil trends.

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 above 50- periods EMA which is providing a solid support at $61.50.

WTI Crude Oil – 120 – Min Chart

For the moment, the Oil is heading south to complete 61.8% Fibonacci retracement at 66.75 and that’s where I will be looking to jump in the market. Overall, the trend of Crude Oil is bullish and we should always avoid taking anti-trend trades.

WTI Crude Oil – Trading Plan

The idea is to stay bearish bullish above $61.65 with a stop below $61.10 and a take profit of $62.65.  Good luck!