WTI Crude Oil Slips 3% – What’s Coming Next? - Forex News by FX Leaders

WTI Crude Oil Slips 3% – What’s Coming Next?

Posted Tuesday, January 29, 2019 by
Arslan Butt • 1 min read

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.

Support Resistance
53.07 54.06
52.53 54.51
51.54 55.5
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.

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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