Sideways Range in Crude Oil – Demand Concerns Weigh
Arslan Butt • 1 min read
The WTI crude oil prices rose about 2% in choppy trading to trade above an intraday support level of $46. Recently, crude oil gained support due to weakness in the major currency dollar. But worse than expected manufacturing figures from the Chinese economy weigh on oil prices.
China’s factory activity for December shrank for the first time in more than two years, highlighting the hurdles the Chinese corporate sector is facing due to the trade war issues.
In addition, the European manufacturing figures also disappointed the market. The economic activity hardly grew at the end of 2018.
Key Trading Level: 45.29
Now if we speak about the technical outlook, WTI is facing strong support around $45.30 while the resistance prevails around $46.75 and $47.45 today. So, the idea is to stay bullish above $45.30 with a stop loss below $44.90 and take profit near $46.75 today.
All the best!