Crude Oil Steady Near 5 Months’ High – Let’s Trade the Range

Fellas, crude oil prices surged to five-month highs $64.75 this week. The buying trend was triggered over a mixture of fundamentals suggesting a supply interruption, geopolitical tension, and a sputtering shale sector.

However, the primary factor that been underpinning crude oil prices is the sudden eruption of the dispute in Libya between rival parties. Meantime, the market is experiencing a slowdown from the US shale industry. Moreover, the weakness in the dollar also added some demand for crude oil.

Crude Oil inventories are due to come out at 14:30 GMT today and economists are expecting a build of just 2.6M vs. 7.2M previously. By the way, this can support oil prices today.

WTI Crude Oil – Trading Plan
Well, let’s see what comes later, but right now crude oil is facing strong support above 63.85 along with resistance at $64.75. It’s a small trading range and may help us secure a good trade today.

Support Resistance
63.66 64.72
63.13 65.25
62.06 66.32
Key Trading Level: 64.19

I’m looking to stay bearish below $63.85 with a stop loss above $64.35 and take profit around $63. On the upper side, we can also set a buy stop somewhere around $64.75 to target $65.35.

Good luck!