Crude Oil Tests Double Top – Brace for a Breakout - Forex News by FX Leaders
WTI 4 hour Chart

Crude Oil Tests Double Top – Brace for a Breakout

Posted Wednesday, October 23, 2019 by
Arslan Butt • 1 min read

WTI crude oil prices are flashing red due to the data from the Amerian Petroleum Institute which showed that United States inventories increased last week. The US Crude Oil WTI futures lost 0.8% to $54.07.

Crude stockpiles increased by 4.5 million barrels for the week ended October 18, the API said. The Energy Information Administration (EIA) weekly report is scheduled to release tomorrow. Analysts expect the EIA to report a build of 2.23 million barrels.

WTI crude oil has fallen almost 18% from an April high as the United States and China trade war dragged on, and due to an increase in global supplies. The next OPEC meeting is not until December. The market will continue to trade carefully until then.

WTI 4 hour Chart

Daily Support and Resistance
S3 50.95
S2 52.52
S1 53.37
Pivot Point 54.09
R1 54.94
R2 55.66
R3 57.23

WTI Crude Oil – Forex Trading Signal

WTI crude oil is testing the double top resistance level at 54.51 area. It’s a crucial trading level to determine today’s trade plan. For instance, the bullish breakout of 54.51 level can trigger further buying in crude oil until 55 and 55.45.

Below 54.50, we can expect to sell bias to dominate and lead oil prices towards 53.60.

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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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