A day before, we had a series of winning forex trading signals, but crude oil knocked us out at stop loss. WTI plunged about 3%, its biggest one-day percentage drop in a month.
Put simply, two things impacted the market:
1 – The trade war between the United States and China is weighing on futures. The market’s confidence faded that the two parties would soon end their prolonged tariff fight. That’s hurting the Chinese economy and causing a drop in oil demand in the global market.
2- Besides that, an energy services firm, Baker Hughes, reported the addition of 10 oil rigs last week, which is another signal of rising US production, despite the low demand in the market.
WTI Crude Oil – Technical Outlook
Crude oil has come out of the ascending triangle pattern that supported the black gold near $52.65. The same level is now extending a strong hurdle up there.
The candles closing below moving averages are also suggesting a selling bias of traders. While the leading indicators are trading in the sell zone.
Key Trading Level: 53.52
WTI Crude Oil – Trade Plan
The idea is to stay bearish below $52.75 with a stop loss above $53 and take profit around $51.40.