WTI Crude Oil Slips – Bearish Engulfing & 50 Periods EMA Plays!
Arslan Butt • 1 min read
Today, crude oil prices soared more than 1%, set for its largest one-day increase in a month. The buying triggered after Saudi Arabia said OPEC and its partners supposed demand was bending enough to warrant an output cut of 1 million barrels per day. As a result, investors are entering buying positions to price in the news.
WTI Crude Oil – Technical Analysis
Speaking of the technicals, crude oil has tested the resistance level of $61.30. Let us recall that it’s the same level which supported the oil on November 7 and worked as a double bottom level.
For now, the same level is working a resistance and, interestingly, crude oil has formed a bearish engulfing pattern right below this level which demonstrates a bearish bias of investors.
Key Trading Level: 60.09
Crude oil is likely to stay bearish below $61.30 until $60 and $59.75. Whereas, the bullish breakout of $61.35 lead the oil prices towards $62.50.