Crude Oil Retests 50 EMA - Quick Forex Trading Signal - Forex News by Strategia Forex
WTI crude oil

Crude Oil Retests 50 EMA – Quick Forex Trading Signal

Posted Tuesday, October 1, 2019 by
Arslan Butt • 1 min read

WTI crude oil prices recovered due to the output decline in the 3rd quarter at the world’s biggest crude oil producers, even though demand concerns remain to keep a lid on oil prices. Whereas, the US crude traded higher 39 cents, or 0.7%, at $54.46 a barrel.

Crude oil prices showed a significant quarterly decline during this year on Monday, due to a slowdown in the global economic growth and the trade war between the United States and China.

Notably, Saudi’s kingdom has restored total WTI crude oil output and capacity to the levels before the facilities were destroyed in the recent drone attack. Moreover, Saudi Arabia pumped around 9.78 million barrels per day (bpd) of crude oil in August.

Additionally, OPEC’s production continued to drop to the lowest in 8 years in September at 28.9 million bpd, down 750,000 bpd from August’s updated figure and the lowest monthly total since 2011. This eventually extended some support to dropping crude oil prices today.

WTI Crude Oil – Technical Outlook

On the 2 hour timeframe, crude oil is trading in the bearish channel below 55.60 area. WTI has formed three black crows on the 2-hour chart, which is suggesting bearish bias in the black crack.

On the lower side, the immediate support that crude oil faces is at 54.50 area. It’s also a double bottom area which can bring some buyers near 54.50 trading zone.

WTI crude oil

Daily Support and Resistance

 

S3 50.59

S2 52.66

S1 53.43

Pivot Point 54.73

R1 55.5

R2 56.79

R3 58.86

I will be looking to stay bearish below 54.75 and bullish above the same level to target at least 40 pips on either side.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Britain and the European Union finally reached a new tentative Brexit deal on Thursday, hoping to escape the acrimony, divisions, and...
2 days ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of