Descending Triangle & 200 MA Pushing Crude Oil Lower

Posted Tuesday, May 7, 2019 by
Arslan Butt • 1 min read

On Tuesday, WTI crude oil prices were mixed during the Asian session, pressured by worries that the escalating Sino-US trade war could stall the global economy. Whereas, the US sanctions on crude oil exporters Iran and Venezuela supported to keep the market on edge.

Crude oil got a massive hit after the trade talks between the world’s two biggest nations hit a wall on Sunday after Donald Trump declared fresh import tariffs on Chinese goods. Which is why we still see a bearish impact on crude oil prices.

Crude Oil – Technical Analysis

  • On the technical side, crude oil is facing strong resistance at 62.50.
  • The 200 periods moving average is also suggesting resistance around the same level of 62.50.
  • On the 4 hour timeframe, crude oil has filled yesterday’s gap to place a high around 62.50, which means oil has a potential to reverse lower now.
  • The Stochastics has tested 80 and now taking a U-turn.

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

Consider selling below $62 with a stop loss above 62.30 and take profit around 61.45 today.

Good luck!

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