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!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt is our 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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of