WTI Crude Oil – Top Two Things to Know Before Trading Today

WTI crude oil jumped around 1% during the Asian session to test $57.55 over the fundamentals. In this update, I’m going to share the top two reasons to expect a bullish reversal in oil.

Top Two Things to Know Before Trading Today

WTI crude oil prices are supported amid expectations of supply cuts from OPEC, despite record US production. Recently, the Organization of the Petroleum Exporting Countries (OPEC) is pushing for the producer group and allies to cut oil production by 1 million to 1.4 million barrels per day (bpd). Looks like the US-China trade war has started influencing the crude oil demand.

In response, OPEC is trying to support falling prices by reducing supply to adjust for a slowdown in demand and prevent oversupply.

Secondly, crude oil trades above a significant support level of $55. It has formed a hammer pattern followed by a strong bearish trend which managed to support oil above $55.

On the daily chart, oil is trading at $57.20 with an immediate support near $56.65. The intra-day resistance can be found at $57.95 and the violation of this level can give us further bullish trend until $58.50.

Support Resistance
57.04     57.36
56.93     57.47
56.77     57.63
Key Trading Level: 57.2

Now the thing is, crude oil has also formed a bearish flag on the 4- hour chart, which is sort of dangerous thing for bulls. Let’s keep an eye on $57.35 as the market can stay bearish below it and the bullish breakout can offer us a buying trade.

Stay tuned for more updates!