Crude Oil Trades Bearish Ahead of API Reports- Quick Trade Plan!
Arslan Butt • 1 min read
Crude oil is trading bearish near $71.25 as the Chinese economic growth slowed down amid the escalating trade conflict between the United States and China. Looks like a good day to trade crude oil as both technical and fundamental indicators suggest a bearish trend. Are you up for it?
U.S. API Weekly Crude Oil Stock
The American Petroleum Institute is due to report the weekly inventory levels of US crude oil, gasoline and distillates stocks. The figure shows how much oil and product is available in stores. The indicator gives an overview of US petroleum demand. The draw in inventories increases the prices of Crude Oil, whereas, the inventory builds diminish the prices over lower demand concerns.
Today at 20:30 (GMT), the API (American Petroleum Institute) is due to release the stockpiles report which significantly impacts the crude oil prices. The previous figure reported a build of 9.750M barrels. Let’s wait and watch for the new figures.
Technical View of WTI Crude Oil
Technically, crude oil has completed the 61.8% Fibonacci Retracement at $72.35 before falling below the 50- periods EMA at $71.80. Crude may face an immediate support at $70.85 and $70.45 ( a solid one) while the resistance is at $72.50 and $72. Stochastics are signaling bearishness in crude oil.
Crude Oil Trading Plan
Today, the idea is to stay bearish below $71.25 with a stop at $71.60 and a take profit at $70.85. Traders, another idea is to wait for the API report before entering any position in oil prices as it often reacts more than 100 pips on this news. Good luck!