WTI crude oil prices recovered more than 1% overnight after the US Energy Information Administration reported a 1.7 million barrel crude inventory drop for the week ended October 18, against the expectations for a build of 2.2 million barrels.

But unfortunately, crude oil dropped its gains soon due to the comments by Russian Energy Minister Alexnder Novak as he said no proposals had been put forward to change the terms of a global deal or to control crude oil supplies that were agreed between OPEC and its partners.

Growth in Asia could moderate to 5% in 2019 and 5.1% in 2020, the IMF said. These are 0.4% and 0.3% lower than its April projections. Crude oil is down more than 15% from an April top due to the trade war between the US and China, the world’s two biggest oil importers, which has dented global demand.

Daily Support and Resistance
S3 50.23
S2 52.69
S1 54.21
Pivot Point 55.14
R1 56.66
R2 57.6
R3 60.05

WTI Crude Oil – Forex Trading Signal
On the 2 hour timeframe, crude oil has entered the overbought zone, suggesting chances of bearish retracement. Crude oil is facing immediate resistance at 56.10 area.

Below this level, crude oil has opportunities to go for bearish retracement until 54.85, which marks the 38.2% retracement level.
On the way, WTI crude oil may find strong support around 55.30 level, and that’s where I will be looking to take a buy position for a quick 40/50 pips.

Good luck!