Current trend

Last week, oil price grew moderately due to a decline in USD.

Last Friday, comments from Jerome Powell on the lack of signs of accelerated inflation and the negative effects of the trade war with China made investors doubt in the possibility of raising rates in December. In addition, last week, the decline in oil reserves and the reduction in US oil rigs number supported the instrument in the short term.

The resumption of anti-Iranian sanctions by the US, which will take effect in November, positively affects prices. Most experts believe that its introduction will contribute to a significant reduction in exports of "black gold" in Iran.

Today, there is a lack of key macroeconomic releases, so, moderate strengthening of the instrument is expected. Tomorrow, at 22:30 (GMT+2), API Crude Oil Stocks release will be published. Considering the increasing operating costs and the decline in rig count number, the instrument will continue to strengthen in the short term.

Support and resistance

On the 4-hour chart, the instrument was corrected to a strong resistance level of 68.30. Bollinger bands are directed upwards, and the price range has decreased, indicating the continuation of correction of the uptrend. MACD histogram is in the positive area, maintaining a strong buy signal. Stochastic is approaching the oversold area, a strong buy signal can be generated within 1–2 days.

Resistance levels: 69.31, 70.86, 72.37, 74.06.

Support levels: 63.44, 65.08, 66.45, 67.85, 68.30.

Trading tips

Long positions can be opened from the current level with the targets at 70.00, 70.35 and stop loss 67.65.

Short positions can be opened below the level of 67.65 with the target at 66.40 and stop loss 67.95.

Implementation period: 1–3 days.

WTI Crude Oil

BuySellSpread
55.2255.1480

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point68.32
Take Profit70.00, 70.35
Stop Loss67.65
Support levels63.44, 65.08, 66.45, 67.85, 68.30, 69.31, 70.86, 72.37, 74.06

Alternative scenario

RecommendationsSELL STOP
Entry Point67.60
Take Profit66.40
Stop Loss67.95
Support levels63.44, 65.08, 66.45, 67.85, 68.30, 69.31, 70.86, 72.37, 74.06
WTI Crude Oil: 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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