Oil is on the Slide

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

Posted Wednesday, October 31, 2018 by
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!
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
eToro announces a significant cut in spreads on cryptoassets to increase awareness of the potential of crypto and blockchain more broadly
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of