On Tuesday, WTI crude oil is trading mixed, but primarily range-bound. Renewed tensions over the US-China trade relations are helping keep prices from pushing higher.
OPEC Extends Supply Cut – Bullish Bias
The OPEC-led supply cuts have been the prime driver of this year’s rally. So the possible extension of the production/output cut could trigger a bullish trend in crude oil. However, since the OPEC alliance is not scheduled to meet until the end of June, WTI and Brent prices could struggle for another month.
Crude Oil – Technical Outlook
On the 4-hour chart, crude oil has formed a bullish channel which is suggesting bullish sentiment of investors while providing support around $63. While resistance stays around $63.60. On the higher side, the violation of $63.60 can open further room for buying until $64.50.
Key Trading Level: 63.24
As you can see, the 50 periods EMA has crossed the 200 periods EMA from downside, which is a clear signal for buying. However, I would prefer to see if WTI breaks over $63.70 resistance before placing a buying trade.
Let’s wait and watch now. Good luck!