WTI Crude Oil Forming Lower Highs and Lower Lows
Arslan Butt • 1 min read
What’s up, traders,
WTI crude oil prices retraced back to $56.30 as the US navy hit an Iranian drone. Today in the early Asian market, WTI crude oil price stayed bullish after the United States hit down an Iranian drone in the Strait of Hormuz in what Donald Trump described as a defensive action. The US.crude oil WTI Futures increased by 1.6% to $56.2.
The International Energy Agency (IEA) doesn’t anticipate WTI to surge significantly as the demand is slowing and there is an excess in global crude markets, its executive director said on Friday. Meanwhile, Stephen Innes stated that the indications that the US Federal Reserve will cut rates aggressively to support the economy were also behind Friday’s increases.
Key Trading Level:56.02
On the technical side, crude oil has formed a lowers high and lowers low pattern on the 3-hour chart which is suggesting a strong bearish bias of traders. Crude may face immediate resistance at 56.30 along with support around 54.50.
On the other hand, the bullish breakout of 56.30 can lead to oil prices towards 57 and 58.50. I will be looking to take a sell position below 56 today.