Bearish Breakout in Crude Oil – Trump Calls on OPEC to Ease High Price - Forex News by FX Leaders

Bearish Breakout in Crude Oil – Trump Calls on OPEC to Ease High Price

Posted Tuesday, February 26, 2019 by
Arslan Butt • 1 min read

WTI crude oil fell dramatically from $57.70 to $55, breaking out of the bullish channel. The sell-off was triggered after the US President Donald Trump called on OPEC to reduce its attempts to boost the oil prices.

Crude oil prices were heading north over the past couple of weeks as the weaker dollar and the US-China trade deal increased oil demand in the international market. Trump never likes expensive crude oil as it boosts the cost of goods sold. Thereby, he expressed concern about oil prices and repeated his previous calls to the Organization of the Petroleum Exporting Countries (OPEC) to keep prices steady.

Support Resistance
55.49 55.76
55.32 55.86
55.05 56.13
Key Trading Level: 55.59

As you can see on the 4-hour chart, oil has violated a bullish channel to place a low at $55.02. The WTI is in oversold territory now and it needs to retrace back before exhibiting further selling.

Hence, we can expect oil prices to test $23.65 (23.6% retracement level) and $56 (38.2% Fibonacci level). Consider staying bullish above $55 to target $56.03 today.

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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