WTI Crude Oil is trading slightly bullish as traders focused on the chances of tighter markets due to US sanctions against OPEC’s third-largest crude exporter Iran, which is set to be inflicted in November.

It was quite surprising to see a rise of inventories by 1.9 million barrels to 396 million barrels in the week to September 21. Since the build up in stocks came after five consecutive weeks of drawdowns, crude oil took a sharp dip. Yet, the Iranian issue is stronger than the EIA weekly report. For now, crude oil has completed 38.2% retracement at $71.65 and it’s trading below a triple top resistance level of $72.60

Support Resistance
71.58 72.47
71.06 72.85
70.17 73.74
Key Trading Level: 71.96

WTI Crude Oil – Trade Idea

The idea is to stay bearish below $72.60 with a stop above $73 to target $71.55. Whereas, buying is preferred on the bullish breakout of $72.60 to target $73.35. Good luck!