WTI Crude Oil Under Bearish Pressure – Chinese Economy Suffers Overtrade War!
Arslan Butt • 1 min read
The WTI Crude oil continues to trade bullish as traders remained wary over the supply outlook and the fallout from global trade tensions between the US-China trade wars. Before we proceed towards today’s technical outlook, let us recall that the WTI price has been under a selling pressure as trade tensions between the United States and China have heated up.
The trade war seems to cause a damage to Chinese manufacturing and non-manufacturing PMI figures as both of these missed the forecast.
Looking at the technical side, crude oil is facing a solid resistance near $67. The 20 periods MA is blocking its way to the upside. While the support remains at $65.65.
The violation of $67 can lead oil prices towards $67.75. Whereas, the market can remain bearish below $67.
EIA Crude Oil Inventories Report
At 14:30 (GMT), the crude oil inventories will remain in focus. Economists are expecting a build of 3.6 million vs. 6.3 million builds during the previous week.
WTI Crude Oil – Trade Plan
- EIA Reports a Build Over 5M: I will be looking to sell crude oil for quick 40 -60 pips with a 30 pips stop loss.
- EIA Reports a Draw Over -5M: This may drive more than 80 pips buying in the crude oil prices, and I will be looking to capture it with same 30 pips stop loss. Good luck!