Crude oil price analysis – WTI re-attempts $53 mark

Crude oil price is seen making another attempt to regain the 53 handle in the European session this Friday, having found some support near 52.40 region.

9 August 2019 | SQUARED DIRECT – The selling pressure surrounding crude oil price eased a little on Thursday and allowed the barrel of West Texas Intermediate to erase a small portion of this week’s losses. After dropping to its lowest level since early January at $50.50, the WTI rose toward the $53 handle but met resistance there.

The data from China on Thursday showed that the trade surplus in July came in at $45.06 billion to beat the market expectation of $40 billion and eased concerns over a weak demand outlook. Additionally, the lack of fresh headlines surrounding the US-China trade conflict paved the way for crude oil to stage a technical correction.

Similarly to Saudi Arabia, the UAE’s energy minister Suhail al-Mazrouei said that they will support actions to balance the oil market and added that they were confident that their OPEC and non-OPEC partners will take similar measures, providing support to crude oil bounce.

Crude oil price technical analysis

Crude oil price headed to its lower level during Wednesday’s session reaching the $50.50 support level after losing momentum, but then took a U-turn during Thursday’s early session and erased most of the losses after pulling away from the oversold zone.

The price is currently is still trading just above the $52.5 support level and looks like the recovery is on its way to extend. We will be focusing on the $53.26 resistance level before we turn our attention to the downside again.

Support: 53.26/ 52.5
Resistance: 53.89/ 54.42

Chart (H4)


Trading in Forex and Contracts for Difference (CFDs), which are leveraged products, is highly speculative and involves a high level of risk. Therefore, Forex and CFDs may not be suitable for all investors because it is possible to lose all invested capital. Only invest with money you can afford to lose. Before deciding to trade, you need to ensure that you understand the risks involved. Seek independent advice if necessary. Please refer to our Risk Disclaimer.

Share Your Opinion, Write a Comment