Crude Oil – Ascending Triangle, Bearish Engulfing & Geopolitical Tensions

Earlier today on Friday, WTI crude oil prices surged more than 1% to trade around $53.75. In this update, we are going to discuss the reasons behind a bullish rally and what next to expect from crude oil.

Well, the investors gained confidence after reports that Washington could postpone trade tariffs on Mexico. White House and Mexican government officials met on Wednesday to try to reach a deal to halt or delay President Trump’s plan to impose tariffs on roughly $350 billion in imports, a threat that poses significant implications for both economies. The positive news triggered buying in crude oil.

Besides, crude oil also gained support amid signs that OPEC and other producers may extend their supply cuts.

Technically, WTI crude oil is facing resistance around $53.75, extended by horizontal trendline. Oil has also closed a bearish engulfing pattern which signifies a potential for a bearish reversal. The price action may not be too big, but it’s likely to be enough to help us secure quick 30 pips today.

WTI Crude Oil – Trade Idea
We have opened a forex trading signal to stay bearish under 53.30 with a stop loss over the 53.60 and target of 52.90.

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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