Home Forex Forex Market Analysis Crude Oil Bearish Retracement In Play – Brace for a Bullish Trade!

Crude Oil Bearish Retracement In Play – Brace for a Bullish Trade!

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The WTI crude oil prices slightly dropped even after positive headlines regarding the United States and China trade news. Chinese state media Xinhua reported that Chinese Vice Premier Liu He discussed an incomplete deal with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer in a phone call during the weekend.

Both sides had helpful discussions about “each other’s core concerns,” the article said. The USTR confirmed the call took place. Besides, the Asian stocks got the support due to the headlines, but unfortunate WTI crude oil prices were little impacted.

A monthly report from the International Energy Agency (IEA) was cited as a potential catalyst for selling today. The IEA estimated that non-OPEC supply growth would grow to 2.3 million barrels per day (BPD) next year compared with 1.8 million BPD in 2019.

Daily Support and Resistance

S3 54.44
S2 55.98
S1 56.99
Pivot Point 57.53
R1 58.54
R2 59.08
R3 60.63

The oil prices remained under pressure over the data that showed weekly U.S. crude stockpiles surge by 2.2 million barrels, crossing the forecast of a 1.649 million-barrel rise.

WTI Crude Oil – Trade Idea 

Consider taking buying positions above $57.20 with a take profit at $57.75 and stop loss of $56.90.

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