Crude Oil Tests Bullish Trendline – Quick Trade Setup

Crude oil has completed the C to D wave near $77.10. It violated the immediate support level of $72.75 on Wednesday to continue to bearish..


Recalling our earlier update, WTI Crude Oil Take a Dip – Bearish Butterfly Does Well, crude oil prices plunged to $71.78 level from the high of $76.88 within a week. All this came in response to the bearish butterfly pattern on the daily chart which was attracting sellers.

The pattern completed the C to D wave near $77.10. It violated the immediate support level of $72.75 on Wednesday to continue to bearish momentum. But the oil is testing a bullish trendline support near $71.78.

As you can see on the chart, the WTI crude oil has also closed a doji candle right above the major support level of $71.78, suggesting neutral sentiment of investors. I can be a good time to capture the retracement and that’s exactly what I’m trying to do now.

Support Resistance
71.57 74.25
70.59 75.95
67.91 78.63
Key Trading Level: 73.27

Our forex trading signal is to buy crude oil above $72 with a stop below $71.75 and a take profit at $73. Let’s see how it goes and we may probably close it before the release of EIA inventories report during the New York session.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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