Crude Oil fell sharply below $68.65 after the EIA reported a surprise draw-down in crude stockpiles. Taking advantage of the oversold commodity, we managed to catch some quick pips. However, I’m looking to take another position on a retracement. Are you up for it?

WTI Crude Oil – Fundamental Review

As per the EIA report, Crude stocks fell last week as refineries lifted output, while gasoline stocks declined. Crude stocks sank by 4.6 million barrels in the last week compared with a forecast for an increase of 246K barrels.

WTI Crude Oil – Technical Outlook

Crude Oil is massively overbought and is likely to retrace back. You can see on the chart that Oil is facing an immediate support near $63.42 (23.6% Fibo) and $63 (38.2% Fibo).

WTI Crude Oil – 4 Hour Chart ​

Looking at the 4-hour chart, Crude Oil is facing a solid resistance near $63.70. The number of Doji and Spinning Top candles are signifying the potential for a bearish reversal. However, a break above $63.75 can lead price higher towards $64.25.

WTI Crude Oil – Trading Plan

Investors are suggested to keep a close eye on $63.70 to take a bearish entry. Whereas, buying will be preferred above $63.75. Stay tuned!