On Monday, WTI crude oil drops continuously in Asia, adding further selling to massive losses from last week that came in response to an unexpected rise in oil stockpiles. WTI crude oil is down 0.8% to $58.35 by now.
Crude oil showed a significant weekly loss for the year after the data showed an unexpected surge in crude oil inventories. WTI ended the week almost 7% down while and Brent slid about 5%.
In addition to this, the trade war between China and the US, the world’s biggest crude oil importers, continued to be in focus as President Donald Trump will meet Chinese counterpart Xi Jinping for discussing trade-related issues in Japan in the coming month.
WTI Crude Oil – Technical Outlook
The market hasn’t moved much over the weekend and even on Monday as investors are staying out in the wake of public holidays in the United Kingdom and the United States. Crude oil continues to face support around $57.30.
On the 4-hour chart below, the Fibonacci retracement indicator is likely to provide resistance around the 23.6% level at $58.65 and 38.2% retracement at $59.45.
Key Trading Level: 58.55
Crude Oil – Trading Signal
The idea is to stay bullish above $58 with a stop loss below $56.75 and take profit of $60.