Descending Triangle Pattern In Crude Oil – Saudi Arabia Warns of Oversupply! - Forex News by FX Leaders

Descending Triangle Pattern In Crude Oil – Saudi Arabia Warns of Oversupply!

Posted Friday, October 26, 2018 by
Arslan Butt • 1 min read

The WTI crude oil continues to trade bearish, falling more than 1% during the early Asian session. The black gold is heading for a third weekly loss after Saudi Arabia warned of oversupply, while a drop in stock markets and anxieties around trade clouded the outlook for fuel demand.

WTI Crude Oil – Technical Outlook
At the moment, crude oil is trading near the 50% Fibonacci retracement level which is extending a solid resistance to oil near $67. The same level is also important because 50 – periods exponential moving average is extending resistance at $67. There’s a descending triangle pattern which is supporting the black crack above $66 and the violation of this level this level can lead oil prices towards $64.85.

Support Resistance
66.14 67.76
65.29 68.52
63.67 70.14
Key Trading Level: 66.91

It will be nice to stay bearish below $67 to target 50 pips, while bullish seems to loom around $66. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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