Oil Price Plummets on Global Trade Concerns, USD gives Cushion
The oil price opened the week lower due to concerns about global trade being impacted by geopolitical tensions at the G7 summit. China's ban on US-manufactured microchips and the antagonism between the US and China caused worries about global growth. However, the oil price recovered after the US Dollar weakened on continued debt-ceiling uncertainty.
The technical analysis suggests that WTI Oil is in a long-term downtrend, favoring short positions. It is trading below major daily and weekly Simple Moving Averages (SMAs), except for the 200-week SMA. Despite the bearish trend, there are signs of potential bullish momentum.
The mild bullish convergence between price and the Relative Strength Index (RSI) indicates easing bearish pressure. Additionally, the long hammer Japanese candlestick pattern at the May lows suggests a possible strategic bottom. Breaking above the lower high of April 28 at $76.85 would bring the bear trend into doubt.
TRADE IDEA DETAILS
CURRENCY PAIR: WTI Oil (West Texas Intermediate)
CURRENT TREND: Downtrend
TRADE SIGNAL: Possible reversal or temporary bullish move
👉ENTRY PRICE: $71.50 (approximate)
✅TAKE PROFIT: $76.50 (approximate)
❌STOP LOSS: $69.50 (approximate)
Consider entering a long position in WTI Oil at approximately $71.50. Place a stop-loss order at $69.50 to limit potential losses. Set a take-profit target at around $76.50. Monitor the price action and adjust the stop-loss and take-profit levels if necessary. Keep an eye on any significant news or events that could impact the oil market.
This trade idea suggests a potential reversal or temporary bullish move in WTI Oil. However, it is important to stay updated with the latest market developments and adjust the trade plan accordingly.
The technical analysis suggests that WTI Oil is in a long-term downtrend, favoring short positions. It is trading below major daily and weekly Simple Moving Averages (SMAs), except for the 200-week SMA. Despite the bearish trend, there are signs of potential bullish momentum.
The mild bullish convergence between price and the Relative Strength Index (RSI) indicates easing bearish pressure. Additionally, the long hammer Japanese candlestick pattern at the May lows suggests a possible strategic bottom. Breaking above the lower high of April 28 at $76.85 would bring the bear trend into doubt.
TRADE IDEA DETAILS
CURRENCY PAIR: WTI Oil (West Texas Intermediate)
CURRENT TREND: Downtrend
TRADE SIGNAL: Possible reversal or temporary bullish move
👉ENTRY PRICE: $71.50 (approximate)
✅TAKE PROFIT: $76.50 (approximate)
❌STOP LOSS: $69.50 (approximate)
Consider entering a long position in WTI Oil at approximately $71.50. Place a stop-loss order at $69.50 to limit potential losses. Set a take-profit target at around $76.50. Monitor the price action and adjust the stop-loss and take-profit levels if necessary. Keep an eye on any significant news or events that could impact the oil market.
This trade idea suggests a potential reversal or temporary bullish move in WTI Oil. However, it is important to stay updated with the latest market developments and adjust the trade plan accordingly.