Crude Oil Violates Sideways Range – Get Ready for Buying Signal - Forex News by FX Leaders
Crude Oil - 4 Hour Chart

Crude Oil Violates Sideways Range – Get Ready for Buying Signal

Posted Friday, October 18, 2019 by
Arslan Butt • 1 min read

During the Asian session, WTI crude oil prices dropped once again due to the Energy Information Administration (EIA) report which showed unexpectedly more significant increase in US crude oil stockpiles, whereas the weak China GDP growth also sent prices lower.

WTI crude inventories climbed 9.3 million barrels last week, the Energy Information Administration (EIA) reported. On the other hand, the Gasoline stockpiles dropped by 2.56 million barrels, against expectations of 1.21 million barrels. Distillate stockpiles declined by 3.8 million barrels, against the forecast figures fall of about 2.4 million barrels.

In the 3rd quarter, China’s economic growth declined to 6% YoY, which is also putting bearish pressure on crude oil prices. It should be noted that OPEC and its partners agreed to cut their crude oil production by 1.2 million barrels per day till March 2020.

WTI Crude Oil – Technical Outlook

On the technical side, crude oil has come out of the narrow trading range of 53.70 – 52.50. Closing of Doji candle outside this range is confirming the bullish breakout on a 4-hour chart.

At the same time, crude oil has also crossed over 50 periods EMA, which is signaling chances of further buying in the WTI.

On the upper side, crude may find the next resistance at 54.90 while support stays at 53.60.

Crude Oil - 4 Hour Chart
Crude Oil – 4 Hour Chart

Daily Support and Resistance
S3 50.65
S2 52.18
S1 53.18
Pivot Point 53.72
R1 54.72
R2 55.25
R3 56.78

WTI Crude Oil – Forex Trading Signal

The idea is to stay bullish above 53.65 with a stop loss below 53.35 and take profit at 54.25.

Good luck!

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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.
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