Crude Oil’s Bullish Channel Continues to Play – Supply Concerns in Focus

The market still remains quiet as traders stay out of the market in the wake of Chrismas and New Year Holidays. The WTI crude oil prices inc

Arslan Butt•Monday, December 30, 2019•1 min read

What’s up, traders.

The market still remains quiet as traders stay out of the market in the wake of Chrismas and New Year Holidays. WTI crude oil prices increased by more than 20% this year, but there were no sharp spikes, and crude futures barely sniffed $70 a barrel despite assaults on the world’s biggest oil yielder, sanctions that paralyzed crude exports of two OPEC members, and large supply cuts from big oil-producing nations.

Crude-oil futures were relatively unchanged at $61.72 a barrel, while Brent was up 0.4% to $68.16 a barrel. The Energy Information Administration (EIA) reported that crude oil inventories declined by 5.47 million barrels in the week ended December 20 (-1.43 million barrels expected).

Daily Support and Resistance
S3 59.58
S2 60.24
S1 60.67
Pivot Point 60.89
R1 61.32
R2 61.55
R3 62.2

On Monday, the WTI crude oil’s bullish channel remains intact, and it continues to support oil prices around 60.50 along with resistance around 61.10. A bullish breakout of this resistance can extend buying until 61.75.

US oil is likely to trade bullish over 60.89 and bearish below the same level. Whereas, the bearish breakout of 60.89 support can lead crude oil prices towards 59.95. Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.