WTI Crude Oil Finally Breaks a Major Support

Today in the European trading session, the black crack, crude oil, is trading slightly bearish at $63.60, right below the major support cum resistance level of $63.65. The RSI is in favor of bearish trend along with the 50 periods EMA.

Organization of the Petroleum Exporting Countries (OPEC) and its partners meet in June to determine whether to extend withholding output or not. OPEC, Russia and other producers have been decreasing production by 1.2 million bpd from January 1 for six months.

OPEC’s leading member Saudi Arabia is considered to be leaning towards continuing cutting production, but specialists within the group stated that it could boost output from July if interruptions continue elsewhere.

The head of Libya’s National Oil Corp signaled on Friday that renewed combat could wipe out crude output in the country.

WTI crude oil has violated not only the double bottom support but also has a bearish breakout. That’s why we just opened a sell trade with a minimum stop loss of $63.70 and take profit around $63.06.

Stay Safe, Trade Rationally!