WTI Crude Oil: a general analysis

Current trend

This week, oil is trading within a narrow price range near local highs.

At the moment, “black gold” has a high growth potential due to numerous supply disruptions in Libya, Venezuela, and Canada. In addition, the strikes of the two unions of Norwegian oilmen support the instrument. Yesterday, API Weekly Crude Oil Stock reflected a decrease by 6.8 million barrels.

Today, market participants focus on the monthly OPEC report publication. In addition, at 16:30 (GMT+2) EIA Crude Oil Stocks change will be released. Taking into account risks with deliveries, statistics for Tuesday and forecast, the instrument will continue to strengthen in the short term.

Support and resistance

On the daily chart, the instrument is trading near the psychological level of 72.00. Bollinger bands are directed sideways, and the price range remains unchanged, reflecting maintenance of the corrective dynamics. MACD histogram is corrected in the neutral zone, giving no clear signal for entering the market. Stochastic is ready to enter the oversold area, a strong buy signal can be formed during the day.

Resistance levels: 72.57, 73.31, 74.25.

Support levels: 71.31, 70.47, 69.68, 68.80, 67.95.

Trading tips

Long positions can be opened from the current level with the targets at 73.65, 74.00 and stop loss at 71.25.

Short positions can be opened at the level 71.10 with the target at 69.55 and stop loss at the level of 71.35.

Implementation period: 1–3 days.

WTI Crude Oil

Buy Sell Spread
71.978 71.904 74

Scenario

Timeframe Day’s Range
Recommendations BUY
Entry Point 72.06
Take Profit 73.65, 74.00
Stop Loss 71.25
Support levels 67.95, 68.80, 69.68, 70.47, 71.31, 72.57, 73.31, 74.25

Alternative scenario

Recommendations SELL STOP
Entry Point 71.10
Take Profit 69.55
Stop Loss 71.35
Support levels 67.95, 68.80, 69.68, 70.47, 71.31, 72.57, 73.31, 74.25

WTI Crude Oil: a general analysis

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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