It’s just like another normal Monday as the financial instruments are consolidating in strict ranges. Same is the case with crude oil. It’s been trading sideways in the tight trading range of $57.90-$55. Let’s discuss two things you should know about crude oil today.
WTI crude oil is fundamentally supported as one of the biggest oil producers Saudi Arabia plans to cut its crude oil exports in April. The initial estimate is to cut the output below 7 million barrels per day (bpd), while keeping its production “well below” 10 million bpd. Saudi Arabia is doing so to control the supply with an ultimate objective of supporting the falling oil prices.
Secondly, the technical outlook is a bit neutral but highly depends upon the violation of a narrow trading range of $58-$55. The 100 periods EMA is suggesting a bullish trend. The relative strength index also supports the same bullish bias.
For the moment, the idea is to trade sideways by selling at the top around $58 and buying above the lower edge of the trading range at $55.
Good luck!
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