WTI Crude Oil Supported Over US-China Trade Optimism

WTI crude oil prices remained unchanged as traders still await this week’s crude inventories data. US crude oil last traded at $56.52 during the European session open. The weekly US crude stockpiles data is scheduled to release in the coming days and is expected to show an additional 2.7 million barrel build for the week ending 01 November.

WTI crude oil prices may increase in the wake of the United States and China trade optimism, due to which we can expect a potential draw instead of build-up in inventories.

Looking ahead, WTI crude oil prices will take fresh signals from the broader market sentiment amid continuing US-China trade progress and upcoming US Services PMI releases. Moreover, the focus remains on the US weekly crude stocks data from the American Petroleum Institute (API), which is due later today.

On the SIno-US trade front, positive comments from the United States and Chinese officials as well as the United States administration’s plan to remove some tariffs on Chinese goods looks to support the existing risk-on sentiment. Chances of an incomplete trade deal between the United States and China remain high.

Daily Support and Resistance
S3 53.49
S2 55.06
S1 55.8
Pivot Point 56.62
R1 57.37
R2 58.19
R3 59.75

Technically, crude oil is crossing over the double top resistance level of 56.70, and closing of 4-hour candles above this level can drive the bullish trend in WTI prices.

The RSI and Stochastics are holding in the buying zone, suggesting chances of bullish sentiment in the market. On the upper side, the immediate resistance is likely to stay at 57.50, and continuation of this level can extend further buying until 58 level.

Good luck!