Crude Oil – Ascending Triangle, Bearish Engulfing & Geopolitical Tensions
Arslan Butt • 1 min read
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.