Crude Oil Completes ABCD Pattern – Should We Sell? - Forex News by FX Leaders

Crude Oil Completes ABCD Pattern – Should We Sell?

Posted Monday, January 21, 2019 by
Arslan Butt • 1 min read

On Monday, the WTI crude oil prices jumped to their highest so far in 2019. There are multiple fundamentals going on behind oil movement. Let’s look at them.

Lately, the refinery processing in China, the world’s second-largest oil user, climbed to a record last year. Thing is, oil is soaring despite a slowing global economy.

Support Resistance
53.01 54.55
52.03 55.12
50.49 56.66
Key Trading Level: 53.58

Crude Oil has formed an ABCD pattern on the 4-hour chart. It’s about to complete the C to D leg somewhere near $55. Typically, the bullish ABCD pattern leads to a bullish trend, therefore we would look for a buying position in crude oil.

For now, we need to keep an eye on $53 as it’s providing solid support and that’s where I would like to place a buy. Whereas, it’s likely to face immediate resistance near $54.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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