Oil Slips After Trump Pressed OPEC – is it Time to go Long?
Arslan Butt • 1 min read
Earlier during the Asian session, WTI crude oil fell dramatically, extending Friday’s decline that halted a weeks’ long rally. Most of the bearish trend was triggered after the US President Donald Trump asked that OPEC members boost production to diminish the impact of US sanctions against Iran.
The news triggered a massive sell-off in crude oil as the oil prices fell from $66.20 area to $62. The technical side of the market is now suggesting a bullish setup.
Let’s take a look at the 3-hour chart – the RSI and Stochastics are holding below 20, suggesting a potential bullish retracement.
The series of doji and test bar candles are demonstrating the bullish bias of traders. Therefore, crude oil is likely to gain support above $62.50. It has the potential to retrace back until 23.6% level of around $63.40 and 38.2% Fibo levels of about $64.
WTI Crude Oil – Trade Signal
We have opened a buying position above $63.10 with a stop loss below $62.75 and take profit of around $63.45.