In the past couple of weeks, crude oil has been maintaining a big trading range of $60.45-58. The market is a bit confused whether to sell it over global economic slowdown sentiment or buy it on the prospect of tighter US crude supply.
The recent jump in crude oil prices has been triggered by the dovish Federal Reserve, and weak factory data from the United States, Europe and Asia. For now, there’s no solid reason to predict a clear trend via fundamental analysis, but the technical indicators can help us here.
WTI Crude Oil – Technical Analysis
- On the 4-hour chart, crude oil is facing stiff resistance at $60.40 along with support around $58. The lack of volatility and trading volume are keeping it floating in this range from March 15.
- The 200 periods moving average is far away from the current market price, confirming a bullish trend in oil.
- Another interesting thing that just happened is a bullish crossover on the 14 – periods RSI. This also suggests the bullish bias of traders.
Key Trading Level: 58.93
Crude Oil – Trade Idea
The idea is to place a buy trade above $59 with a stop loss below $58.70 and take profit of around $60.