WTI crude oil continues to extend its steep dive on the back of worries about fading world demand and oversupply. Meanwhile, global shares declined as the energy sector lacks confidence due to a slow down in the global economy.

Investors seem to wait for the US API reports later today but considering the trade war between China and the US, we can expect a build in inventories. On the other hand, the US has exempted eight countries from Iran’s sanctions list.

The dollar-denominated commodity is also under pressure due to a stronger dollar and the chances that the dollar will continue to get stronger over interest rate hike sentiments.

Support Resistance
53.73 58.31
52.03 61.19
47.44 65.78
Key Trading Level: 56.61

WTI Crude Oil – Trading Plan

The idea is to stay bullish only above $55.45, perhaps, you can set a buy stop to target 60/80 pips with a stop below $55.10.

Good luck!