Crude Oil Bearish Channel Drives Bearish Trend – Get Ready for Sell Signal

WTI crude oil prices decreased sightly due to the surprise increase in the US crude inventories, whereas the United States GDP fell to an annual rate of 1.9% in the 3rd quarter.

WTI crude oil inventories increased by 5.7 million barrels for the week ending on 25 October, the Energy Information Administration reported. The market was anticipating an increase of around 494,000 barrels.

There is no main reason or driver for crude oil prices today after the United States Federal Reserve delivered a rate cut by the 25-basis-point for the third time this year according to the plan and hinted to pause easing trend until the economy takes a turn for the worse.

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


Daily Support and Resistance
S3 52.47
S2 53.77
S1 54.35
Pivot Point 55.06
R1 55.64
R2 56.36
R3 57.65

WTI Crude Oil – Forex Trading Signal
WTI crude oil has formed an inverted hammer pattern at 54.85 area on the 4-hour chart. At the same time, the inverted hammer tried to test the bearish trendline resistance at 55.15 level but failed to violate the which is pretty likely to trigger a selling trend in US crude oil.

The RSI and Stochastics stay in a bearish zone below 50, supporting the selling bias in the market. Considering this, I have opened a forex trading signal to sell crude oil below 55 with a stop loss above 55.20 and take profit at 54.50 today.

Good luck!

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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