WTI Crude Oil Back Above $63.50 - Forex News by FX Leaders

Thursday and Friday of last week were pivotal for intermediate-term valuations of WTI crude oil. June WTI futures crashed through three daily support levels, including a key 38% Fibonacci retracement. At the very least, traders long the WTI market for the month of April took profits ahead of May 1st.

For the oil industry as a whole, Q1 of 2019 hasn’t been a banner quarter. Earnings from heavyweights Exxon and Chevron dipped as expected last Friday, largely due to slumping profits from refining operations. Exxon posted earnings of $2.4 billion, down big on a per share basis from Q1 2018 and Q4 2018. Chevron fared better, showing earnings of $2.6 billion, with per-share gains coming in above industry estimates. In total, Q1 2019 is being deemed a weak quarter for big oil by the markets.

June WTI Crude Oil Futures: Technical Outlook

Throughout last week, I promoted a long trading plan from a 38% Fibonacci level just above $65.25. The number was blown out quickly. A hard bearish break on Thursday afternoon sent prices tumbling through the $65.00 psyche level.

June WTI Crude Oil Futures (CL), Daily Chart
June WTI Crude Oil Futures (CL), Daily Chart

Overview: June WTI crude oil is in a pivotal technical area on the daily time frame. Price is rotating just above the Bollinger MP and Daily SMA, signaling non-committal sentiment. At least for today, it appears that the bulls have a slight edge over the bears.

In the event we see a daily close above the $63.00 handle, then a position buy may set up for midweek. The fundamentals facing this market are still bullish ― be on the lookout for energy players to step in and bid WTI heavily beginning in early May.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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