⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Trade War Shakes the Oil Market – Trade Plan

Fellas, US President Trump hasn’t only shaken the financial market but also the commodity market. That being said, WTI crude oil prices plunged by more than 2% on Monday after the US President Donald Trump said he would hike tariffs on Chinese goods this week, as trade discussions are going very slow.

How do Trump’s Remarks Impact Crude Oil?

China is a manufacturing country and one of the biggest consumers of crude oil. The rise in trade tariffs could cause a drop in China’s exports and ultimately it’s manufacturing needs. Consequently, the Chinese demand for crude oil may also drop down. With that sentiment, investors shorted the crude oil futures, and selling pressure weighed on crude oil prices.

Technical Outlook

On the 4 hour chart, crude oil has violated the descending triangle pattern which supported black gold around $62.50. This level has been violated now, and it’s working as a resistance. Crude oil has gained some support around $60.30. WTI has formed a candlestick pattern called inside bar and it signals a bullish reversal. The 50 periods EMA stays around $62.60 and may keep crude oil prices lower.

Support Resistance
61.31 62.53
60.72 63.15
59.51 64.37
Key Trading Level: 61.94

WTI Crude Oil – Trade Plan

Fellas, I will be keeping an eye on $60.30 support area as crude oil can stay bullish above this level until $61.90. On the flip side, selling will be preferred below $62.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles
🔒 OPEN A TRADING ACCOUNT