June 20, 2019, | SQUARED DIRECT – West Texas Intermediate crude oil price recovered from lower levels ahead of the FOMC meeting overnight whereby the Energy Information Administration reported that US Crude supplies dropped by 3.1 million barrels for the week ended June 14 following two consecutive weeks of gains. On the other hand, the recent development has been positive with Xi and Trump both committing to a meeting at the G20 to discuss trade, which takes tariff increases off the table, for the time being at least.
Crude oil price technical analysis
As expected, Crude oil price edged higher and reached the $55.73 resistance level after regaining traction during yesterday’s and today’s early session. The price is currently trading just below the $55.73 resistance level with the black gold being in an overbought state. We will keep focusing on the upside, however, we also expect a little correction in the price before we put the 56.69 resistance level on our watch.
Support: 55.06 / 54.42
Resistance: 55.73/ 56.69
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.