Crude oil continues to remain in consolidation as traders continue to monitor the US-China trade talks that are set to resume on Tuesday. This meeting is coming on the back of two strong economic news releases for the US, despite concerns on the global economic outlook. Crude oil traders are also keeping an eye on any new developments in the impasse at the Strait of Hormuz.
WTI crude oil continues to trade at just under the $56 price level, as buyers continue to provide support for the commodity. However, there is a lack of generous bullish sentiment, which has left the commodity asset in a range-bound position. Concerns abound with regards to the global economic outlook and the eventual impact that a slowdown will have on crude oil demand. Recovery is also being hampered by the recovery of the US dollar and the possibility that the stronger durable goods and upbeat Q2 GDP results may lead to a smaller-than-expected rate cut by the Fed on Wednesday.
Technical Plays for Crude Oil
So far, the fundamentals are balancing out and the this brings the technical plays to the fore. WTI crude oil charts show a symmetrical triangle formation with the asset at the verge of a near-term break out. We may see this break happen on or before the FOMC meeting on Wednesday; something is surely about to happen here.
Upside break would ultimately target the 57.36 and 58.17 price levels. A downside break will lead to 55.17 and possibly 54.75 respectively.Don’t miss a beat! Follow us on Twitter.
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