Crude Oil Bounces Off Over EMA – 50% Fibo Level Holds
WTI Crude Oil prices are flashing red mainly after the American Petroleum Institute reported that the US crude stockpiles rose during the last week. The API said that crude inventories increased by about 600,000 for the week ended October 25.
During the previous week, the API forecast a build up of more than 2.2 million barrels, but eventually, the official data were released to reveal a 1.7 million barrel increase.
While the macro headlines and the substantial economic/event will keep the crude oil traders entertained in short term, traders will keep their eyes on macro and economic event headlines.
Moreover, the official US inventory data for the week ended October 25, the Energy Information Administration (EIA) Crude Oil stockpiles change will also be essential to watch. Forecasts suggest +0.729 million barrels of print to follow -1.699 million barrels prior.
Although, buyers could not return due to news that China warned that the US’s blame-game at the UN over Xinjiang was not suitable for trade talks.
Daily Support and Resistance
S3 52.78
S2 54.08
S1 54.81
Pivot Point 55.38
R1 56.1
R2 56.67
R3 57.97
WTI Crude Oil – Trade Setup
On the technical front, crude oil has completed 50% Fibonacci retracement at 55.15, and closing of candles above this level can extend buying until 55.80.
The RSI and MACD are suggesting bullish bias along with the bullish engulfing pattern, which is formed at the 2-hour timeframe.
I will be looking to take buying trades above 55.35 level along with the take profit at 55.80 today.
Good luck!
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