Earlier today during the Asian session, WTI crude oil prices surged due to lingering tensions concerning potential supply obstructions in the Middle East. But the softer demand outlook kept a check on price rise. Moreover, the pledge from the International Energy Agency (IEA) to take fast action against the global oil market to keep it well supplied, also weighs on the crude oil prices.

IEA declared that the WTI crude oil market is presently sufficiently supplied, with oil production outpacing demand in the first half of 2019, driving up international stocks by 900K barrels per day. Moreover, the WTI crude oil market is anticipated to stay more unstable during this week due to uncertainty regarding the action that the United Kingdom would take after Iran captured a tanker late last week.

WTI Crude Oil – Technical Outlook

Crude oil’s lower high and lower low pattern is violated as oil isn’t following it anymore as it supports the bullish bias in oil. Black crack has crossed over the resistance level of 56.35 yesterday, but it has come back to trade at 56.25.

For now, crude oil is going nowhere as investors seem to face indecision whether to go long or short over mixed fundamentals. Anyway, the 50 and 100 periods moving averages stay around the 58 area, giving us enough room to complete retracement. On the lower side, crude may find support at 55.50 and 54.75 zones.

Support Resistance
55.21 56.46
54.54 57.04
53.29 58.29
Key Trading Level: 55.79

WTI Crude Oil – Trading Signal

The idea is to stay bullish above 55.80 with a stop loss below 55.65 and take profit of around 56.60 and 57.

Good luck!