Crude Oil Consolidates in Wide Range – Choppy Trade Opportunity
During the European open, WTI crude oil prices recovered some ground on the positive news from China’s services sector. On the lower side, crude oil has touched the low of $53.10, having formed a double bottom pattern.
Crude oil still experiences bearish pressure amid fears over the weakening global economy. So far, WTI prices have increased by 34 cents, or 0.63%, at $54.28 at the barrel.
Earlier, WTI crude oil prices slipped to around 1-month low as data showed that US manufacturing activity in August contracted for the 1st time in three years and Eurozone manufacturing activity contracted for a 7th month in August.
However, the international financial markets recovered following the positive results from China’s services sector, which has expanded at the fastest speed during the 3-months in August because of increase in new orders and the highest increase in hiring during the year.
On the technical front, WTI is facing support at $53.12 level and this level is also working as a double bottom. The RSI is crossing mid-level 50 on the upper side, suggesting chances of bullish recovery.
We may see resistance up at around 54.65 area as the 20 and 50 periods EMA are likely to keep oil prices lower today.
Daily Support and Resistance
S3 49.58
S2 51.7
S1 52.76
Pivot Point 53.83
R1 54.89
R2 55.96
R3 58.09
WTI Crude Oil – Trade Idea
I will be looking to open a sell position below 55 areas and buy position above 53.15 having placed a 30 pips stop loss and 50 pips take profit.
Good luck!
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