
Crude Oil Plunged Amid US-China Trade War Jitters – Quick Trade Plan
WTI crude oil prices dropped on Tuesday in Asia due to more US-China trade jitters. A Chinese government source said that China is not optimistic about prospects for a trade deal.
Officials in China are troubled by US President Donald Trump’s comment that there was no agreement on phasing out tariffs, according to the report. Crude Oil dropped 0.2% to $57.03 while international Brent Oil futures slipped 0.1% to $62.36. Looking forward, traders are also paying close attention to the upcoming December 5-6 OPEC+ meeting.
Traders also await weekly crude inventories reports from the US Energy Information Administration and the American Petroleum Institute this week, which are due on Wednesday and Thursday, respectively.
WTI Crude Oil – Technical Outlook
Crude oil prices are trading above the triple bottom support level of 56.50, and closing of 4-hour candles above this level signify chances of buying in US Oil.
The RSI and Stochastics are stuck in the oversold region, and these also suggest the chances of a bullish reversal in crude oil prices. On the lower side, crude oil is likely to find support around 56.25 and 56 levels in case of bearish breakout of 56.60 support level. On the higher side, resistance stays at 57 and 57.65 today.
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Support and Resistance
S3 54.22
S2 55.74
S1 56.36
Pivot Point 57.26
R1 57.88
R2 58.78
R3 60.3
WTI Crude Oil – Forex Trading Signal
The idea is to stay bearish in crude oil below 57.26 with a take profit at 56.45 and stop-loss at 57.40.
Good luck!