Crude Oil - Daily Chart

WTI Crude Oil Trading Sideway – Bearish Butterfly Plays

Posted Tuesday, May 1, 2018 by
Arslan Butt • 1 min read

Crude oil is stuck in a narrow trading range of $67 – $69. Crude oil is fundamentally bullish but the stronger dollar is keeping it on hold. For now, the market is waiting for the API report which is due during the New York session. Brace yourself for a quick move…

WTI Crude Oil – Technical View

On the daily chart, we can see a bullish triangle pattern which is supporting crude oil near $68 along with a resistance up at $69.40. For the moment, crude oil is trading below $68 as the price has already moved near the horizontal resistance level of $68.10. Is it going to break upward?

Crude Oil - Daily Chart

Well, the candlestick pattern “three black crows ” are signaling bearish bias of traders. Whereas, the momentum indicators, RSI and Stochastic are trading heading towards the oversold zone. By the way, don’t forget to see API stockpile report which is due to come out at 20:30 (GMT).

 

We can’t ignore the bearish butterfly pattern which has completed it’s C to D wave near $69. Hence keeping crude oil bearish.  

 

WTI Crude Oil – Trade Idea

It will be nice to stay bearish below $68.35 to target $67.45 and $67.20 along with a stop loss above $68.65. Good luck!

Check out our free forex signals
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments