WTI Crude Oil prices rose due to the Organization of Petroleum Exporting Countries (OPEC) showed that the supply is expected to increase slightly less than previously thought.
Non-OPEC supply is expected to rise 2.20 million barrels per day, down from 2.25 million in OPEC’s September report. OPEC also trimmed forecasts for global demand growth this year.
WTI crude oil also gained support on the sentiment that the United States and China could reach a positive outcome during this week. They are avoiding any kind of further increase in trade tensions. High-level negotiators from the two sides are currently meeting in Washington.
Moreover, the White House stated that the trade talks going unexpectedly well. However, more positive headlines regarding trade increased the chances of a currency deal this week. President Donald Trump also commented that the trade talks with China are going well.
Technically, WTI crude oil has violated the bearish channel, which was extending its resistance at 53. On the upper side, WTI crude oil is likely to find its next resistance at 54.80 area.
The 50 periods EMA is also staying at 54.80, and closing below this may help us capture a sell position.
Daily Support and Resistance
Pivot Point 52.53
WTI Crude Oil – Forex Trading Signal
The idea is to stay bearish below $55 with a stop loss over $55.23 and take profit at $53.50. On the flip side, buying can be seen above the $55 level as crude may head upwards to target $56.