WTI crude oil prices are still flashing red, although the positive report came regarding the Sino-US trade patch-up, and these are the biggest oil importers in the world.

US President Donald Trump has fueled the market expectations by announcing that the United States is ahead of schedule to sign the first round of the United States and China trade deal before Xi and Trump meet in Chile next month. Moreover, Chinese officials also said that most main parts of the deal are already completed.

In addition, the Office of the US Trade Representative said Washington is thinking increasing specific tariff exclusions on $34 billion of Chinese imports. The positive trade progress boosted US stocks overnight but did not provide much support to the crude oil markets today.

The sluggish China data served as upwind for the crude oil markets during this week. Profits at Chinese industrial companies declined for the 2nd-straight month during September because producer prices continued unchanged.

Looking forward, traders now expect the weekly US inventory data. The American Petroleum Institute releases industry data later today, whereas the US government’s Energy Information Administration releases inventory data on Wednesday. According to the forecast, US crude stockpiles could have increased by around 700,000 barrels during the previous week.

Daily Support and Resistance
S3 53.44
S2 54.77
S1 55.27
Pivot Point 56.11
R1 56.61
R2 57.44
R3 58.78

WTI Crude Oil – Forex Trading Signal
WTI crude oil prices have already slipped to 50% Fibonacci retracement area. Closing of Doji candle above this level is suggesting the chances of a bullish retracement.

Overall, the black crack is in the oversold zone, as you can see in the RSI and Stochastic are holding below 20, signaling chances of a bullish reversal. The idea is to keep an eye on 55 level today as above this, we may see bullish trend until 55.65 and below this, the crude oil can drop to 54.80.

Good luck!