Crude Oil Standstill Near Two-month Low – Quick Trade Plan - Forex News by FX Leaders

Crude Oil Standstill Near Two-month Low – Quick Trade Plan

Posted Thursday, June 7, 2018 by
Arslan Butt • 1 min read

During the early European session, the WTI crude oil inched higher but held near the two-month low. It’s mostly because of a rise in EIA oil inventories and record weekly domestic production.

On Wednesday, the EIA reported a build of 2.1 million barrels inventories, compared with analysts’ expectations for a decrease of -2 million barrels which gave traders another reason to short the crude oil.

Secondly, the oil shortage from Venezuela is keeping the oil prices on hold. In case you are wondering what Venezuela has to do with oil prices, it is one of the world’s largest exporters of oil and has the world’s biggest oil reserves at an estimated 296.5 billion barrels (20% of global reserves). It’s also facing the threat of U.S. sanctions which may halt oil supplies.

Technically,  the RSI below 20 suggests that oil is oversold and needs to retrace back a bit before giving us further selling. On the daily chart, oil is likely to face a horizontal resistance near $66.15 along with a support near $64.

Crude Oil - Daily Chart

Support     Resistance

64.49         65.79

64.1           66.18

63.45         66.83

Key Trading Level: 65.14

WTI Crude Oil – Trading Plan

I will be keeping a closer eye on $65.95 to target $64 and $63.85, whereas, we may have a buying signal above $66. 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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