Booking Quick Profit in Oil As the Crash Accelerates, Despite Good News

Crude Oil has just gone through another crash, losing $4.50 in several hours and we booked profit on our sell Oil signal

Skerdian Meta•Wednesday, September 7, 2022•1 min read

Crude Oil has been bearish since reversing above $123 and despite all that has been going on, there have been good events for Oil, but it hasn’t been able to take advantage of them, continuing lower today. A report today said that Iran nuclear talks were on hold and that led to a brief rally in crude.

On Monday, OPEC+ decided to cut production by 100k barrels/day and that led to a similar fleeting rally. Now Oil prices are breaking down, running stops on a break of the August lows and $85.00. It’s not a pretty picture with little technical support until the psychological $80 level.

The bottom line here is that crude Oil is unable to keep rallying on good news and has now broken technical support. The market is clearly worried about a sharp economic slowdown in Europe, lockdowns in China and pain in emerging markets. So, the situation looks pretty bad for Oil.

Crude Oil H1 Chart – Crashing After Being Rejected at MAs

US WTI Oil has lost more than $4 during this reversal today

Earlier today in the European session we saw a bullish reversal, as crude Oil prices increased nearly $3 on the Iran nuclear deal news. But moving averages stopped the climb and now crude Oil has reversed lower again, losing around $4.50. We opened a sell Oil signal a while ago, which closed in profit pretty fast.

US WTI Crude Oil Live Chart

WTI

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.