U.S. Session Trade Setup: WTI crude oil soars despite concerns of storage!
The WTI crude oil prices soar again, despite the intensifying concerns about decreasing the capacity to store the crude oil across the world. These concerns strengthened due to the fears that the oil demand could not increase sharply even after countries ease lockdowns that have been imposed on business and social life to fight the coronavirus outbreak.
Recently the crude oil prices took some bids from intraday low of $10.64 while rising to $13.25 during the early U.S. session opening hours. The global rating giant recently announced that China's relief actions would support growth and jobs in the near term. The reason behind the fresh support to the energy benchmark could be the U.S. dollar pullback ahead of the U.S. session. The U.S. dollar index (DXY), which measures the greenback against major currencies, trims the early-day bounce to just 100.0857 by the press time.
However, the positive statement from U.S. President Donald Trump to restart the economy as well as easing lockdowns in Australia and New Zealand's report seems to support oil prices.
Technically, the WTI was trading in the oversold zone and triggered bullish retracement to trade around 13.25 level. This level marks 38.2% Fibonacci retracement, and the continuation of a bullish trend can lead to crude oil prices towards a 50% retracement level of 14.20. While the closing of candles below 38.2% Fibo level may drive some selling today.
WTI Crude Oil - Trade setup
Sell Below: 13.25
Take Profit: 13.75
Stop Loss: 12.09
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