Crude Oil Trades the Range – Market Muted Ahead of FOMC
Arslan Butt • 1 min read
What’s up, fellas.
So far it’s been a quiet market as investors seem to save their shots ahead of Fed rate decisions this week. Considering this, we are experiencing thin trading volume and volatility in the crude oil market. On Monday, crude oil prices showed a slight bearish trend over signs of an economic slowdown.
Lately, the international trade conflicts started to exceed supply fears that were stoked by attacks on oil tankers in the Gulf of Oman last week and triggered prices higher.
According to JBC Energy, the Oil & Gas Market’s Independent Research Centre Analytic, China’s industrial production growth is slipping to the lowest level in 17 years over trade tensions with the US. Today, oil markets will have to absorb further demand concerns as India executed retaliatory tariffs on diverse US goods on Friday.
WTI Crude Oil – Technical Outlook
At the moment, the technical side of crude oil suggests a bearish bias. For instance, the 4-hourly has formed a descending triangle pattern which is supporting oil around 50.95 along with resistance around 54.60. However, the intermediate resistance stays at 53. The violation of 53 resistance level may trigger sharp buying until 54.65.
Whereas the immediate support stays at 51.70 and the violation of 51.70 support level may trigger sharp sell-off until 50.67 and 48.45.