WTI at the Edge of Bearish Channel – Can we Expect Bullish Reversal?
Arslan Butt • 1 min read
On Thursday, the black crack crude oil is trading at 52.55 area, losing around 0.25% for the day. The immediate support in crude oil prices came due to the chances of a rate hike from Saudi Arabia, the word’s top crude oil exporter.
During the previous week on September 14, the strike against key Saudi oil processing facilities caused the production to fall by half or 5.7 million barrels per day. Due to this, crude oil prices traded in the overbought region for a couple of days.
However, the faster-than-expected resumption in Saudi Arabia’s production brought output back to levels from before the attack and led to expectations of a tempered price increase, the sources said.
WTI Crude Oil – Technical Outlook
On the 2-hour timeframe, crude oil is trading in the bearish channel below 53.10 area. WTI has formed three black crows on the 4-hour chart, which is suggesting bearish bias in the black crack. However, for now, it’s testing the lower corner of the bearish channel which is extending its support around 52.45.
On the lower side, the immediate support that crude oil faces are at 52.45, and below this oil price can fall to 52 areas. It’s also a double bottom area which can bring some buyers near 51.50 trading zone.
Key Trading Level: 53
The idea is to stay bearish below 53 to target 52.45 and 51.86 levels today.