WTI Crude Oil Rallies Above $53.50
Shain Vernier • 1 min read
Late September and early October have been a tough time for WTI crude oil. Prices have fallen consistently, leading to a brutal 10-day losing streak. However, the tides appear to be shifting. The last two sessions have seen some bids hit November WTI, driving prices back above $53.50. While this is still an overwhelmingly bearish market, the much-anticipated test of $50.00 has been avoided for now.
WTI Crude Oil Futures In The Green
For the second consecutive day, November WTI crude oil has experienced significant bullish pressure. Can the positivity last?
Here are the key levels to watch for the remainder of the session:
- Resistance(1): 38% Bear Run, $54.24
- Support(1): Swing Low, $50.99
Overview: Once again this week, global growth concerns and fall seasonality will dictate price action in WTI. With U.S./China trade negotiations likely fruitless and more supply builds projected, WTI is in a position to extend recent losses. In the event we see any negative news from the U.S./China front, or robust weekly API and EIA stocks figures, $50.00 may come into play sooner rather than later. Until a significant bullish retracement occurs above the 38% Bear Run ($54.24), the daily downtrend will remain valid.
In a Live Market Update from Friday, I broke down a short trading plan for November WTI crude oil futures. At press time (12:15 PM EST), the trade is still there for the taking. With a bit of luck, we will see late-day topside extension, bringing the short into play.