Current trend

Today, oil price slightly strengthened, and at the moment it is testing the key resistance at 69.00.

Last Friday, Baker Hughes US Oil Rig Count grew 7 units over the past week. The market ignored the publication, as most investors fear a tightening of US-China tension, which will affect the demand negatively. However, the market’s expectations are ambiguous. On the one hand, Saudi Arabia, Russia, and the US plan to increase production, while supplies from Iran and Venezuela will be significantly reduced.

On November 4, the second block of anti-Iran sanctions against the energy sector of the country will come into force. Last week, Washington announced the readiness to take the stringent measures against countries that would continue cooperation with Iran. At the moment, US intention to reduce the purchase of Iranian oil to zero supports the instrument.

In the next 2 days, there is a lack of macroeconomic releases which may affect the instrument’s dynamics. On Wednesday, at 22:30 (GMT+2), API Weekly Crude Oil Stock release is due.

Support and resistance

On the 4-hour chart, the instrument tests the MA of Bollinger Bands, which is as a key resistance level. The indicator is directed horizontally, and the price range remains wide, indicating the upward dynamics development within the intraday correction. MACD histogram is corrected in the neutral region. Stochastic does not give a clear signal.

Resistance levels: 69.11, 70.35, 71.35, 72.28.

Support levels: 67.87, 66.67, 65.36, 64.22.

Trading tips

Long positions can be opened from the current level with the target at 70.50 and stop loss 68.60.

Short positions can be opened below the level of 68.55 with the target at 67.80 and stop loss 68.85.

Implementation period: 1–3 days.

WTI Crude Oil

BuySellSpread
47.6447.5590

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point69.24
Take Profit70.50
Stop Loss68.60
Support levels64.22, 65.36, 66.67, 67.87, 69.11, 70.35, 71.35, 72.28

Alternative scenario

RecommendationsSELL STOP
Entry Point68.50
Take Profit67.80
Stop Loss68.85
Support levels64.22, 65.36, 66.67, 67.87, 69.11, 70.35, 71.35, 72.28
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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