Crude Oil’s Sideways Channel Remains Intact – Eyes on Retail Sales
On Friday, WTI crude oil prices continue to trade in a narrow range of around 55.22 – 54.40 as investors can’t find any major reason to trade the energy sector.
Overall, the crude oil market stays bearish as an OPEC agreement to cut oil production and optimistic Sino-US trade development failed to lift prices.
A day before, in a meeting OPEC agreed to cut its oil production and demand Iraq and Nigeria to bring output down in an effort to avert a glut as US production rises.
Despite all the bearish fundamentals, crude oil continues to trade lower.
- One of the major reasons is the violation of a bullish channel which is not extending resistance at 57.20 area.
- Besides that, the 20 and 50 periods EMA are also pushing oil prices lower below 56 areas.
- The RSI and Stocahsrtics are holding in the selling zone and need a reason to drive bearish breakout.
WTI Crude Oil – Technical Levels
Support Resistance
57.03 58.59
56.3 59.4
54.74 60.96
Key Trading Level: 57.85
A bearish breakout of 54.75 support can extend sell-off until 53.60 area. While bullish breakout of 55.20 can extend bullish rally until 56.30. So, let’s wait for the breakout before taking any position.
Good luck!
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