WTI Crude Oil Dips to $70 – 38.2% Fibo Completed, What’s Next? - Forex News by FX Leaders
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WTI Crude Oil Dips to $70 – 38.2% Fibo Completed, What’s Next?

Posted Monday, May 14, 2018 by
Arslan Butt • 1 min read

Crude oil traded slightly bearish during the Asian session in response to the ruthless rise in U.S. drilling activity pointed to increased output. Last week, the U.S. President Tumps showed his intentions of renewed sanctions in response to Iran’s nuclear program. It caused bullish waves in crude oil at first, but soon the price reversed.

Investors seem to price in the fact that a U.S. decision to reimpose sanctions on Iran is helping China’s recently established crude oil futures, and may encourage efforts to start trading oil in Yuan instead of dollars.

Technically speaking, crude oil finally has come out of the sideways range ($70.65 – $71.65) after mixed fundamentals. The $70.65 level was working as a resistance but since it’s already violated now, the same level will be a support. Oil is likely to target $70.15 for now and below this, it can go after 69.70. Looking at the RSI, it’s holding below 50 signaling a bearish bias of investors.

Crude Oil - Technical Setup

WTI Crude Oil – Trade Idea
The idea is to stay bullish above $70.15 with a stop below $69.70 and a take profit of $70.75. Good luck!

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About the author

Arslan Butt // 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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