Crude Oil Breaks Above 50% Fibo Level – 53.50 Level Eyed
Arslan Butt • 1 min read
What’s up, traders.
On Friday, the crude oil prices rose amid expectations of more OPEC production cuts despite the International Energy Agency (IEA) reporting demand growth at its lowest level since the financial crisis of 2008.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and other crude oil producers, a cartel which is also known as OPEC+, admitted in July to stretch their supply cuts till March 2020 to support oil prices.
Besides that, Russia’s energy ministry announced IEA’s assessments were mostly in line with its own projections and that Moscow had taken into account the likelihood of a slowdown in oil demand when it reached an output cut deal with OPEC.
On the other hand, a weaker dollar is also helping support falling oil prices as foreign investors have to pay less to purchase crude oil, which ultimately increases WTI crude oil’s demand.
On the technical front, crude oil has violated the 50% retracement level of 52.85 and now it’s heading towards 61.8% Fibo level of 53.50. The continuation of the bullish trend can extend oil prices towards 54 as well.
I don’t see any hurdle extended by EMA and Stochastics, as both these technical indicators are suggesting bullish bias.
WTI Crude Oil – Trade Idea
Fellas, consider staying bullish above $52.85 with a stop loss below $52.55 and take profit of around $53.50 and $54.