Quick Trade – WTI Crude Oil Retesting 61.8% FIbo Level

Good afternoon! I hope you enjoyed our forex trading signal on GBPJPY which we recommended in Our Trading Signal On GBPJPY. The global markets are trading sideways yet we are striving our best to secure profits for you. I see an opportunity in Crude. Let's check it out.

API Inventories Report

Most of the investors are awaiting weekly Crude Oil Stock reports. The American Petroleum Institute is scheduled to release the report at 21:35 (GMT).

What to Expect?

Last week, the report showed a build of 6.513M barrels in inventories. I can't see any forecast on the calendar, but a guess is the inventories should fall after Saudi Arabia's issue. The issue caused spikes in prices, and it should have increasing demands as well. Bullish waves can be seen on the release.  

Technical View – WTI Crude Oil

The overbought Crude Oil has just tested 61.8% Fibonacci retracement level at $56.80 on the 4-hour chart. If you are not familiar with the Fibonacci retracement, please check out FX Leaders Fibonacci Trading Strategy.

Crude Oil – 4-Hour Chart – 61.8% Fibo Level

Earlier, the Crude Oil tested the same level ($56.85) and that's making it a double top pattern. As we know, the market is supposed to reverse on double top patterns.

Crude Oil Trading Plan

For the reasons discussed, we shared a signal to open a sell position below $56.80 with a stop above $57 and take profit at $56.45. Be careful with the news, and it's better to close position ahead of the release of the news today. Good luck!

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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