Crude Oil Steady as US-China Trade Issue Dominates – Technical Outlook

On Monday, WTI crude oil drops continuously in Asia, adding further selling to massive losses from last week that came in response to an unexpected rise in oil stockpiles. WTI crude oil is down 0.8% to $58.35 by now.

Crude oil showed a significant weekly loss for the year after the data showed an unexpected surge in crude oil inventories. WTI ended the week almost 7% down while and Brent slid about 5%.

In addition to this, the trade war between China and the US, the world’s biggest crude oil importers, continued to be in focus as President Donald Trump will meet Chinese counterpart Xi Jinping for discussing trade-related issues in Japan in the coming month.

WTI Crude Oil – Technical Outlook
The market hasn’t moved much over the weekend and even on Monday as investors are staying out in the wake of public holidays in the United Kingdom and the United States. Crude oil continues to face support around $57.30.

On the 4-hour chart below, the Fibonacci retracement indicator is likely to provide resistance around the 23.6% level at $58.65 and 38.2% retracement at $59.45.

Support Resistance
57.98 59.58
56.95 60.15
55.35 61.75
Key Trading Level: 58.55

Crude Oil – Trading Signal
The idea is to stay bullish above $58 with a stop loss below $56.75 and take profit of $60.

Good luck!

ABOUT THE AUTHOR See More

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.

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