WTI Crude Oil Standstill – Brace to Trade the Range

On Jan 30, crude oil managed to violate a sideways trading range of $53.90 – $51.30 to place a fresh high near $54.90. Here's trade plan...

Written by: Arslan Butt • Friday, February 1, 2019 • 1 min read

• Last updated: Friday, February 1, 2019

WTI crude oil prices retraced back on Thursday as uncertainty over the US-China trade outlook heightens. However, the medium-term outlook still remains bullish after the US President Donald Trump remarked that he would meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal.

With this trade deal, the odds of business growth rises, and growing business triggers manufacturing, which ultimately boosts the demand for crude oil. So for now, oil is supported merely over sentiments.

WTI Crude Oil – Technical Outlook
On January 30, crude oil managed to violate a sideways trading range of $53.90 – $51.30 to place a fresh high near $54.90. Crude oil seems to come out of an overbought trading zone after a series of fundamentals.

At the moment, oil is stuck in a narrow trading range of $53.45 – $53.70 and a breakout is likely to determine the next movement.

Support Resistance
53.42 55.15
52.71 56.18
50.98 57.91
Key Trading Level: 54.44

WTI Crude Oil – Trading Plan

I’m looking to stay bullish above $53.75 and bearish below $53.35 with 50 pips take profit on each side.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.