WTI Crude Oil Heading North Towards Upper Range $58 – What’s Next?
On Tuesday, crude oil prices surged by +0.21% to trade around $57, lifted by healthy demand and output cuts led by producer group OPEC.
Simply put, two things impacted the market:
1 – The trade war between the United States and China was weighing on futures. The market’s confidence faded that the two parties would soon end their prolonged tariff fight. That sentiment was hurting the Chinese economy and causing a drop in oil demand in the global market. Recently, the US President Trump decided to push the trade deal deadline and they are highly likely to enter into a deal on March 27 Summit.
2- Besides that, WTI crude oil prices have been gaining broad backing this year from supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated partners like Russia, aimed at tightening markets.
WTI Crude Oil – Technical Outlook
The technical outlook is slightly neutral to bullish as crude oil is still trading in a narrow range. Further trend depends upon the violation of a sideways channel which is support oil around $55 along with resistance around $58. The 100 periods EMA is suggesting a bullish trend. The relative strength index also supports the same bullish bias.
Support Resistance
54.88 57.51
53.49 58.76
50.86 61.39
Key Trading Level: 56.13
WTI Crude Oil – Trade Plan
The idea is to trade sideways by selling at the top around $58 and buying above the lower corner of the trading range at $55. Good luck!
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