Crude Oil Steady at Peak – Bullish Gap Yet to Fill - Forex News by FX Leaders

Crude Oil Steady at Peak – Bullish Gap Yet to Fill

Posted Tuesday, September 17, 2019 by
Arslan Butt • 1 min read

On Tuesday, WTI crude oil prices dropped and stepped back from its gains after increasing as much 20% in the past session due to escalating tensions in the Middle East. US Oil dropped 1.5% to trade at $61.73 after placing a high of around $63.33.

For now, traders are eyeing fresh hints and updates about how Saudi Arabia can recover from a drone attack, the unfortunate event happened on Saturday and destroyed almost 5% of global supply.

Earlier, investors were expecting Saudi Arabia to restore some of its central stockpiles for some days, but a report from a Saudi official stated that they will probably face a problematic disruption over weeks or months. So that’s also keeping the crude oil prices supported.

WTI Crude Oil – Technical Outlook

Technically, crude oil is holding below $62.95 level, which is extending substantial resistance to the crude oil. Typically, the market fills the gaps before continuation of a trend, but in this case, the fundamentals are pretty bullish, which is why we may see crude oil staying bullish. On the lower side, crude oil may find support around $59.25 area.

The RSI and EMA are suggesting bullish, but the market is also afraid of a bearish retracement.

Daily Support and Resistance
S3 52.15
S2 56.65
S1 59.16
Pivot Point 61.15
R1 63.65
R2 65.64
R3 70.14

WTI Crude Oil – Trade Plan

We are holding a buy position above 62.27 to target 62.57 with a stop loss below 61.87. Let’s see how the market plays.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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