On Tuesday, WTI crude oil prices held steady around $58.30 after rising over 2% on Monday in response to the new Saudi energy minister Prince Abdulaziz bin Salman’s remarks. He remarked that the expectations would unite with his country’s policy of restricting crude output to support falling crude oil prices.

Chinese Inflation Rate Supports

Earlier today, the optimistic inflation figures from China has improved the risk sentiment, sending stock markets higher, GOLD bearish, and supporting the crude oil prices.
China is the biggest consumer of crude oil; it has a significant influence on crude oil prices and positive economic events from China boost sentiments for continued crude oil demand. Therefore, we see a slightly bullish trend in crude oil prices.

WTI Crude Oil – Technical Outlook

On the technical side, crude oil has formed a series of Doji candles followed by a tweezers top pattern. Both of these patterns are bearish in nature and typically drive a bearish reversal.
The relative strength index (RSI) is holding in the overbought zone, looking for a reason to enter into the selling zone.
The Fibonacci retracement indicator is suggesting support around 23.6% Fibo levels at 57.50 and 38.2% level at 56.99.

WTI Crude Oil – Technical Levels

Support Resistance
56.97 58.51
55.98 59.07
54.43 60.61
Key Trading Level: 57.52

WTI Crude Oil – Trade Plan
We have entered a sell position below 57.99 with a stop loss above 59.39 and take profit of around 57.19.

Good luck!