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WTI Crude Oil Set to Violate Sideways Range – Bearish Trend Dominates

WTI crude oil prices continue to trade in a sideways range between the $59.25-$57.75 area. Investors are still feeling uncertain about how Saudi Arabia can restore full crude oil output after being heavily damaged in drone attacks earlier this month. Moreover, tensions in the Middle East continue to weigh.
Despite struggles by the prime crude exporter to convince the market it can reopen full output by September end, state oil company Saudi Aramco has requested some clients to switch crude grades and delay shipments.
With that, the investor confidence in crude oil recovery has weakened, which is why the oil prices are a bit supported. The West Texas Intermediate (WTI) crude was at $58.73 a barrel during the Asian open but slipped lower over mixed sentiments to trade at $57.80.

WTI – Crude Oil – Technical Outlook

WTI crude oil prices are supported above 57.75 are, and the violation of this level can bring further sellers until 56.50 level. On the lower side, a continuation of bearish bias can send oil prices deeper towards 56.35 zones. The RSI and Stochastics are holding at 32 and 42, signaling a bearish bias.

Daily Support and Resistance
S3 55.87
S2 57.19
S1 57.78
Pivot Point 58.51
R1 59.1
R2 59.83
R3 61.14

WTI Crude Oil – Trade Idea

Buckle up fellas; I will be opening a sell trade as soon as the crude oil breaks below 57.75 area. The target is going to be 57 and 56.65.

Good luck!

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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