Crude Oil Slipped to Lowest Since Late 2017- A Quick Trade Plan
Arslan Butt • 1 min read
A surprise build up in crude oil stockpiles in the United States, emerging crude supply and a darkening economic outlook caused oil plunged to their lowest since late 2017. For the moment, WTI trading near $53 and it looks we may have a forex trading signal for crude. Are you ready for it?
On Wednesday, the EIA reported a massive build of 4.9 million barrels inventories, compared with analysts’ expectations of 2.5 million barrels.
Looking at the technical side, crude oil has entered the strong oversold zone. Here’s an upward trendline which can support the oil near $53.
So, here’s the deal: we may see a bullish reversal in crude oil if it manages to hold above $52.85. Alternatively, a violation of $52.85 can push if deeper towards $52 and $51.45.
Good luck and trade with care!