Crude Oil Consolidates Around Triple Top – Quick Trade Setup
WTI crude oil prices are flashing red dropped despite the Organization of the Petroleum Exporting Counties (OPEC) and its partners having agreed to extend the inventories cuts by almost 50% in the coming year 2020.
It is worth noting that the Organization of the Petroleum Exporting Counties has agreed to increase the output cut by 500,000 barrels per day of production. Although, the decision did not succeed to increase the crude oil prices today because the cuts would likely only last through the first quarter of 2020.
Whereas it is a much smaller period than described by some OPEC ministers, who have called for increasing cuts until June or December 2020.
Details of the agreement will be discussed at an OPEC+ meeting that starts later on Friday in Vienna. On the other hand, state-owned oil giant Saudi Aramco priced its IPO at the top of its indicative range and raised $25.6 billion from the world’s biggest offering.
WTI crude oil prices are consolidating below 58.65 resistance area. Crude oil has entered the overbought zone as we can see in the Stochastic and a bearish retracement seems imminent.
Daily Support and Resistance
S3 56.45
S2 57.45
S1 57.87
Pivot Point 58.46
R1 58.87
R2 59.46
R3 60.47
On the lower side, the immediate support is likely to be found around 58. Where, the bearish breakout of 58 can trigger further selling until 57.55 area. In case bulls decide to keep trading higher, we may see WTI testing 58.95 and 59.45 areas. Good luck!
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