Crude Oil Soars to Test Double Top – Brace to Take Sell Trade
WTI crude oil prices dropped due to traders taking profits from the European and US economic data. Despite probabilities for some resolve, the United States and China trade war has hurt the growth of the global economy and crimped energy demand. At the same time, trade deal sentiments remain pretty solid, which are likely to support crude oil shortly.
WTI crude oil prices climbed almost $2 on Friday mainly due to the world’s top two most significant economies commenting that they would be reach a trade deal very soon, and a United States representative stating that the agreement would likely be signed during this month.
The European Union and the United States are set to announce manufacturing data on Monday, with more US and Chinese data to come later in the week.
Daily Support and Resistance
S3 51.21
S2 53.4
S1 54.82
Pivot Point 55.59
R1 57.01
R2 57.78
R3 59.96
WTI Crude Oil – Forex Trading Signal
Technically, WTI crude oil has violated the bearish channel at 54.60 area, which is leading crude oil prices towards 56.75. The market is already in the overbought zone, suggesting chances of a bearish reversal, but the recent bullish engulfing pattern is extending support to WTI crude oil prices today.
Consider taking sell positions below 56.75 with a stop loss above 57 and take profit at 56.25 today.
Good luck!
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