On Friday, WTI crude oil prices soared taking no impact from the US President Donald Trump’s tariff hike on $200 billion of Chinese goods. Well, it’s surprising for a few investors out there in the market as they expected a drop in crude oil prices after a tariff hike. But as you know, this market is all about sentiments.

Everyone knew that there’s gonna be a tariff hike in case US and China fail to come to an agreement. The chances of a trade agreement were pretty low, which is why traders started to “Priced In” the tariff hike news in advance. Eventually triggering a slightly bullish trend in crude oil.

Secondly, crude oil prices gained support as the United States reimposed sanctions on Iran in November after drawing out of a 2015 nuclear agreement between Tehran and six world powers in 2018. Until May, Washington allowed a few countries to buy oil from Iran, which kept the crude oil supplies balanced.

But as soon as the USA discontinued these waivers, the market sentiment turned bullish. Ultimately, crude oil prices gained support over limited supply concerns.

WTI Crude Oil – Technical Analysis

• Technical outlook remains neutral as crude oil continues to trade sideways in a wide trading range of 62.50 – 60.30.
• Oil has a bullish crossover on the RSI & Stochastics, which signals a bullish bias of the market.
• The descending triangle support level of 62.50 is now working as a resistance, giving a hard time to bulls.

Fellas, let’s wait for the market to violate 62.50 level first as closing outside this range is likely to add further buying until 64. In case of no breakout, oil prices can continue to consolidate under 62.50.

Good luck!