Crude Oil Under Bearish Pressure – Symmetric Triangle in Focus
During the Asian markets, WTI crude oil prices dropped as investors seemed worried over the forecast for global economic growth. Crude Oil’s bearish bias gained further attention after Iran said that an emergency meeting regarding the nuclear deal was constructive.
US West Texas Intermediate crude fell by 9 cents, or 0.2%, at $56.11 a barrel after gaining 1% last week.
Recently, discussions between Iran and major energy sector nations settled on a generally positive result, suggesting an easing of tensions in the Middle East. Looking forward, traders’ focus will be on the upcoming Federal Reserve meeting which is due on 30-31July. There are some odds that the Federal Reserve cut rates by at least 25 bp.
On the trade war front, Chinese and the US leaders will meet tomorrow for two days to discuss trade issues. The market is anticipating very low chances of both parties’ talks reaching a positive result.
Crude oil continues to trade sideways as investors seem to face indecision whether to go long or short over mixed fundamentals. The 50 and 100 periods moving averages stay around the 56.60 areas, giving us enough room to complete retracement. On the lower side, crude may find support at 55.50 and 54.75 zones.
Oil is still maintaining the symmetric triangle pattern which is keeping is supported above 55.50 and providing resistance at 56.50. Let’s wait for the breakout.
Support Resistance
55.76 56.63
55.3 57.05
54.42 57.93
Key Trading Level: 56.18
Crude Oil – Trade Idea
The idea is to stay bullish above 55.50 with a stop loss below 55.10 and take profit of around 56.45.
Good luck!
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