WTI Crude Oil – Two Things to Know Before Trading Crude Oil - Forex News by FX Leaders

WTI Crude Oil – Two Things to Know Before Trading Crude Oil

Posted Tuesday, April 17, 2018 by
Arslan Butt • 1 min read

For the past week, Crude Oil has been consolidating in a very tight range, from $66 – $67.50. IThis seems to be due to investors’ uncertainty. The strikes on Syria and ongoing geopolitical tensions are keeping the crude oil supported, while the glut of supplies is making it weaker. In this particular situation, we need to follow the technical indicators.

WTI Crude Oil – Technical Outlook

1) Triple Bottom Support

On the 3 – hour chart, the WTI is forming a triple bottom at $66. Crude Oil has remained supported above this level during the previous week. Typically, the triple bottom levels cause a reversal in prices. So, if WTI manages to break downward, we can expect $65.15 level on the board soon.

2) Oversold RSI & Stochastics

Secondly, the leading indicators are holding in the oversold zone since last week. Technically, we should expect a bounce back in the Oil. Nevertheless, we should be ready for a bearish breakout. Zooming out to the 3 – hour chart, the Oil has also formed a descending triangle pattern. This particular pattern is famous for a bearish breakout.

WTI Crude Oil - 3 Hour Chart

WTI Crude Oil – 3 Hour Chart

WTI Crude Oil – Trading Plan

Keeping it simple, I will be looking to stay bearish below $66, to target $65.15. Whereas, above $66, the market can bounce off to $66.75. Stay tuned!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments