Market Review

WTI Crude Oil: general review

Current trend

WTI crude oil is traded in a lateral channel with an upper boundary of 62.92 and a lower boundary of 60.60. The breakout is more probable, as the demand for "black gold" continues to grow due to the turbulent situation in the Middle East. Saudi Arabia has declared attacks on their oil production sites and tankers off the coast of the United Arab Emirates.

On Wednesday, the report of the US Department of Energy on oil reserves was released. For a week as of May 10, oil stocks in US warehouses increased by 5.431M barrels, after a decrease of 3.963M barrels over the past period. Analysts had expected negative dynamics to remain at –0.800M barrels. The total volume was 472M barrels, which is the highest figure since 2017 and can be a negative signal for the oil market.

Of the global news, it is worth noting the meeting of the OPEC member countries, which will be held in May, where the issue of increasing oil production will be discussed due to the situation with Iran, which came under sanctions, as well as the political crisis in Venezuela.

Support and resistance

Stochastic is at the level of 84 points and indicates the possible correction.

Resistance levels: 62.93, 64.50.

Support levels: 60.60, 58.50.

Trading tips

Long positions may be opened after the breakdown of the support level of 62.93 with take profit at 64.50 and stop loss at 62.00.

Scenario

Timeframe Intraday
Recommendation BUY STOP
Entry Point 63.00
Take Profit 64.50
Stop Loss 62.00
Key Levels 58.50, 60.60, 62.93, 64.50

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