Crude Oil’s Bearish Channel Weighs on WTI – Saudi Arabia Restores Supplies
Arslan Butt • 1 min read
On Friday, WTI crude oil prices continue to drop, especially after recent Chinese economic figures revived anxieties of curbing economic growth. Whereas, the faster-than-expected recovery in Saudi crude oil production this week allayed concerns of significant supply disruptions.
WTI crude oil prices are flashing red due to reports from Saudi Arabia reinforcing that WTI crude oil production has recovered and are fully running.
Earlier traders were pricing in the odds of crude oil shortage amid Saudi oil attack, but on Thursday, the crude oil also filled its 600 pips bullish gap over Saudi Arabia’s confirmation about restoring full production which was supposed to have disrupted about 5% of daily global oil production.
WTI Crude Oil – Technical Outlook
Looking at the 4-hour timeframe, WTI crude oil is trading at 56.11 area within a bearish channel which is supporting it at 55.50 along with resistance at 56.50.
Despite forming a bullish engulfing candle above 56.50 area, crude oil failed to drive buying. Instead, we noticed selling over bearish fundamentals.
The lagging indicators such as 50 and 100 periods EMA are suggesting a bearish trend in crude oil today. The ultimate support seems to be found around 55.50 and 54.60 levels.
Daily Support and Resistance
Pivot Point 56.23
WTI Crude Oil – Forex Trading Signals
I will be looking to take a sell position below 56.25 level with a stop loss above 56.65 to target 55.50 and 54.60 levels.