Bullish Crossover on WTI Crude Oil Ahead of API Report
Arslan Butt • 1 min read
Crude oil continues to rise bullish as traders remained worried over revived U.S. sanctions against major crude exporter Iran. It is expected to squeeze global supply. Before proceeding towards technical outlook, let us recall that the WTI prices were trading under a selling pressure as trade tensions between the United States and China have heated up. The API and EIA report also indicated a build in inventories.
Today, the bulls jumped in after President Donald Trump tweeted that the sanctions were “the most biting sanctions ever imposed”. He also added, “Anyone doing business with Iran will NOT be doing business with the United States,” This may cause a disruption in crude oil supplies.
On the 4 hour chart, crude oil is crossing above a solid resistance level of $69.45. The 100 periods MA was blocking its way to the upside but was violated by the aggressive bullish momentum. Traders, crude oil seems to form a candlestick pattern ”three white soldiers”. It is a bullish pattern by nature and is signaling a strong bullish reversal. The next stop for crude oil can be $70.35 and $71.10.
You are advised to follow the API report which is due to be released at 20:30 (GMT) today.
WTI Crude Oil – Trade Plan
The idea is to trade bullish above $69.45 with a stop below $69.15 and take profit of $70.30. Good luck!