WTI crude oil prices sank due to an escalating trade tussle between the United States and China which weakened confidence in international economic growth. Crude oil prices were down 1.1%, at $53.55 a barrel, having earlier dropped to $52.96.

Trade war concerns and tension regarding economic slowdown are continually increasing due to trade anxieties between the United States and China. Recently, China’s commerce ministry stated last week it will inflict additional tariff of 5% or 10% on a total of 5,078 products, including WTI crude oil, agriculture products such as soybeans, and small aircraft as well.

Besides the tariff hike, the United States President Donald Trump also forced US organizations to pull their production factories out of China. The United States Federal Reserve Chairman Jerome Powell said at a yearly economic symposium in Jackson Hole, Wyoming that the United States economy is in a pleasant place and the Federal Reserve would perform to keep the present economic development on track.

Daily Support and Resistance

S3 49.56

S2 51.9

S1 52.92

Pivot Point 54.25

R1 55.27

R2 56.59

R3 58.94

On the technical front, crude oil is facing resistance around 50 and 100 periods EMA at 55 and 55.50 area. Below this, we may experience a slight sell-off until 53.10. Whereas, a bullish breakout of 55.5 is likely to extend buying until 56. On the lower side, supports prevails at 53.10.

Considering the market volatility, I’m being very careful with forex trading signals. There’s no one-sided movement. However, a rough idea is to stay bullish above 54.25 to target.

Good luck!