Market Cap:
$267B
BTC Dominance:
69.24%
btc:
$10156.33
eth:
$190.47
xrp:
$0.27
Advertise
Forex

Crude oil price analysis - XBRUSD declines sharply to $56

Squared Direct | Jul. 18, 2019
Crude oil price analysis - XBRUSD declines sharply to $56

July 18, 2019 | SQUARED DIRECT - Crude oil price fell sharply yesterday and the selling continues this morning as official data shows that U.S. stockpiles of products like gasoline rose sharply last week, suggesting weak demand during a period of a traditional peak season.

Oil prices have been falling this week as worries over a Middle East conflict have eased, oil production in the Gulf of Mexico has resumed after a tropical storm, and worries have emerged over Chinese economic growth. In addition, on the oil supply front, traders are focusing on large builds in refined product inventories dragging prices down. Moreover, the EIA report yesterday showed a larger-than-expected drawdown in crude stockpiles.

Crude oil price technical analysis

After a slight pullback to the 20-period moving average yesterday, WTI plunged again almost $2 to settle at the $56.30 to $56.50 support area (S1). Prices are trading close to July's lows at 56.04 and selling might accelerate should crude mark new lows for the month.

Although if we look at the 4-hour chart, we notice an important support level at the 200-period moving average in addition to extreme oversold conditions as shown by the RSI. We, therefore, expect a slight pullback from here for the very short-term. On the medium to long-term, however, the trend is clearly bearish.

Support: 56.30 / 56.04
Resistance: 58.22/ 59.98

Chart (H1)

Disclaimer

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.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.