Crude Oil Tests 50-Period EMA, is it Likely to Reverse?

What’s up, fellas.

Our trade in WTI crude oil closed at take profit, giving us 30 green pips. Yesterday, crude oil jumped around 2% after the US crude inventories plunged unexpectedly.

Looks like oil leader Saudi Arabia is sidelining the comments from the US President Donald Trump who is trying to keep oil prices from rising.

EIA Inventories

On Wednesday, US crude stockpiles fell around 8.6 million barrels last week, in opposition to forecast for an increase of 2.8 million barrels. A surprise rise came in response to easing trade war tensions and chances of a trade deal between the two biggest nations, the US and China.

Technical Analysis

On the technical side, crude oil is facing a hard time trying to break $57.45 and has dropped below it. There are 50 periods EMA on the 4-hour chart which is providing it support around $56.30.

Below $56.30, crude oil can drop further towards $55.56 and $55. While the continuation of the bullish trend can push oil prices towards $57.40. So, it’s better to trade in the same range.

Good luck!