Crude Oil Gains Support – Price Correction in Place

On Friday, WTI crude oil prices surged over 2%, recovering from two days of slumps after data registering an increase in US retail sales helped ease concerns about a recession in the world’s biggest economy.

Crude oil gained support after the US retail sales climbed 0.7% in July as customers purchased a range of goods even as they cut back on motor vehicle purchases, Thursday’s data revealed.

Crude oil continues to gain support around 54.40 support, extended by the double bottom pattern on the 4-hour chart. Lately, crude oil has closed a hammer candle right after a solid bearish candle, which is suggesting odds of a bullish reversal in crude oil.

In addition to this, the 50 periods EMA is also extending support at 54.40. However, the leading indicators like RSI and Stochastics are holding below 50, suggesting a bearish bias.

WTI Crude Oil – Technical Levels

Support Resistance

54.77 58.03

52.83 59.34

49.58 62.6

Key Trading Level: 56.09

WTI Crude Oil – Trade Plan

Traders, I will be looking to stay bullish above 54.40 with a stop loss below 54 and take profit of around 56. On the flip side, selling is suggested below 54 with a target of around 53.50.

Good luck!