WTI Crude Oil Breakout of Sideways Range – EIA Inventories Slip!

Posted Thursday, April 19, 2018 by
Arslan Butt • 1 min read

On Wednesday, the EIA reported a draw of -1.1M versus the forecast of  -0.5M barrels. The crude oil price soared to a 3-year high. Moreover, investors are also trading the rumours that Saudi Arabia is thinking of raising the oil price. Is it likely to continue its bullish momentum? Let’s find out…

WTI Crude Oil – Sideways Channel Breakout

Fellows, oil consolidated in a narrow trading range of $65.65 – $67.75 throughout the week but managed to break out of the range on the release of API and EIA reports as both of these showed a draw in inventories. It seems like traders have purchased large quantities of crude oil in response to fears spread by airstrikes on Syria by the United States.

WTI Crude Oil - 120 Mins Chart

WTI Crude Oil – 120 Mins Chart

Crude oil has completed a 161% extension and it can face a solid hurdle at $69.15. A break above this level is likely to open further room for buying until $70, while we can also expect a retracement of the overbought crude oil price below $69.15.

WTI Crude Oil – Trading Plan

For now, I’m looking to stay bearish below $69.15 for a quick 40 pips. However, buying will be preferred on a breach of 69.15, to target $69.75. I will be looking to stay bearish below $66 to target $65.15 today. Stay tuned!

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About the author

Arslan Butt is our 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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