WTI Crude Oil Completes 61.8% Retracement – is it Likely to Form ABCD Pattern?
The WTI crude oil has taken a bullish turn to trade at 53.05, adding +0.08% for the day. Can ABCD Pattern derive further buying today?
On Wednesday, the WTI crude oil has taken a bullish turn to trade at 53.05, adding +0.08% for the day. There’s no doubt that almost all of the fundamentals are supporting the bearish trend in oil. But there’s something new on the table.
Fundamentals Review: Chinese Fiscal Stimulus
During the Asian session, China’s finance ministry officials said China will step up fiscal spending this year to support its economy. Remember, Chinese GDP suffered a drop from 6.5% to 6.4% a couple of days back. Well, let’s hope this fiscal stimulus boosts some business activity in China.
Consequently, crude oil prices edged up on hopes that increased Chinese fiscal stimulus will also increase the demand for crude oil by the world’s second-biggest economy.
WTI Crude Oil – Technical Outlook
The black crack is trading bullish after completing 61.8% retracement at 52.30 level. Oil formed a tweezers bottom pattern on the 4-hour chart, which indicates a bullish trend in crude oil.
At the moment, crude oil is holding steady above 52.30 support area and it can become a become an ABCD pattern, where BC wave completes at 52.30 and CD wave can push oil prices towards 55.30.
Stay tuned to FX Leaders for further updates.
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