WTI Crude Oil Heads for Triple Bottom – Trade War Plays
WTI crude oil prices dropped as the uncertainties increased between the United States and China trade talks, and China is still looking to settle things before signing the phase 1 deal.
The report came that China now wants to do more trade discussions before signing the critical phase one trade deal. The Chinese attitude appeared to contradict the US president’s contention on Friday that both nations were very close to making a deal.
While we were celebrating the positivity from the Sino-US trade talks, for one more time, China didn’t sign the deal and warned that they still have something to settle before ending the phase 1 deal.
If both nations did not succeed in reaching the deal, existing tariffs would not be rolled back, and therefore slowing economic growth will continue to be a significant concern for the WTI crude oil market.
All traders will keep their eyes on the weekly crude inventories data, which is due to release tomorrow and on Thursday. Inventories rose by 9.5 million barrels over the four weeks through October 4, according to Energy Information Administration data.
WTI crude oil prices may get a boost at the end of this week because investors are expecting a drawdown in oil inventories in the United States.
Daily Support and Resistance
S3 51.99
S2 53.26
S1 54.1
Pivot Point 54.53
R1 55.37
R2 55.8
R3 57.07
The idea is to stay bearish below 53.50 area with a stop loss above 54 and take profit at 52.10.
Good luck!
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