Bearish Engulfing In WTI Crude Oil – Is It Going For 50% Retracement?
During the Asian session, oil prices rose as U.S. drilling delayed and investors predicted lower supply once fresh U.S. sanctions against Iran’s crude exports kick in from November. To recall, Iran is the third biggest oil producer in OPEC and supply destruction does place a bullish impact on the crude oil prices.
Technically, crude oil has formed a bearish engulfing pattern on the hourly chart which is suggesting a selling bias of traders. Crude has faced a nice hurdle up there at $68.50 and the RSI is overbought. It seems like oil is going for a retracement. So, the immediate support is likely to be at 38.2% Fibo level of $67.95 and 50% Fibo level of $67.75.
Trade Idea: I will be looking to take a buying position above $67.85 with a stop below $67.50 and take profit at $68.45. Good luck!
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