WTI Crude Oil Under Bearish Pressure – Chinese Economy Suffers Overtrade War!

Crude oil is facing a solid resistance near $67. The 20 periods MA is blocking it's way to the upside. While the support remains at $65.65.

Oil is on the Slide

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!
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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