WTI Crude Oil Near $66.00, Inventories On Deck - Forex News by FX Leaders
Oil

WTI Crude Oil Near $66.00, Inventories On Deck

Posted Tuesday, August 21, 2018 by
Shain Vernier • 2 min read

Since the late-July test of $70.00 for September WTI crude oil, the bears have run prices beneath the $64.00 handle. However, the last four sessions have given long-term bulls reason for hope. Values have rebounded north of $66.00 and may be headed higher from here.

During the U.S. overnight session, my colleague Arslan broke down the China/Iran oil trade. If you haven’t checked out his piece, you can find it here.

In addition to the Iranian sanctions, news is hitting the wires that the U.S. is blacklisting several Russian shipping companies. Citing concerns over illegally transporting crude oil to North Korea, two companies have garnered the attention of the White House. No doubt, this is a small-scale incident. Nonetheless, it does show that the U.S. government is becoming aggressive in global oil and may extend policing activities in the future.

Remember that the weekly crude oil inventories reports are coming up, beginning with the API release later this afternoon. Be sure to stay tuned to FX Leaders for full coverage of crude oil inventories and what they mean to the markets.

WTI Crude Oil Technicals

It has been a positive day for September WTI crude oil futures. At press time, prices are up more than $0.50 and appear poised to extend gains. After rejecting a key topside resistance level, the rally looks to be back on.

September WTI Crude Oil Futures (CL), Daily Chart
September WTI Crude Oil Futures (CL), Daily Chart

Here are the levels to watch for the remainder of the session:

  • Resistance(1): 62% Current Wave Retracement, $66.26
  • Resistance(2): Bollinger MP, $66.59
  • Resistance(3): Daily SMA, $67.55

Bottom Line: For now, WTI crude is in a consolidation mode near the $66.00 handle. In the event price extends to the north, a selling opportunity will come into play.

For the rest of the day, I will have sells in the queue from just beneath the Bollinger MP at $66.55. This is a scalp play to the short, looking for a modest 8-12 ticks profit on a 1:1 risk vs reward management plan.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of