Crude Oil Steady at Peak – Bullish Gap Yet to Fill
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
Pivot Point 61.15
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.