Crude Oil Broadly Stable – Sellers Eyeing 38.2% Retracement

WTI crude oil prices are broadly steady after placing a sharp bullish wave as investors felt a bit of confidence about the US-China trade deal. The US President Donald Trump extended some relief by expressing about his call with Chinese President Xi Jinping and potential meeting next week at the G20 summit in Osaka, Japan. The trade war situation had worsened after Washington accused the Chinese of backing away from previously agreed commitments.

Secondly, the American Petroleum Institute (API) announced a modest draw in crude oil stocks of 812k barrels for the previous week. Today, the EIA estimated that the US inventories are expected to fall by -1.5M, which may add further buying in crude oil. The EIA report is due at 14:30 GMT, but we may see a little movement in the wake of FOMC and Fed interest rate decision today.

Looking at the 3-hour chart, crude oil has entered the overbought zone, forming the double top pattern below 54.35. Crude oil seems to get ready for a bearish retracement, and if that happens, the initial target is likely to be around 53.25 (38.2% Fibo Level) while the bullish breakout can be lead oil prices towards 58 resistance.

Support Resistance
51.67 52.78
51.19 53.41
50.08 54.52
Key Trading Level: 52.3

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
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.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers