wti crude

Markets Closed For Labor Day, Braces For Hurricane Dorian

Financial markets are shut today in observance of Labor Day. Meanwhile, all eyes are on Hurricane Dorian as it slowly moves at a pace of 1mph towards Florida and the Eastern United States. The latest tariff increases between the US and China are anticipated to severely affect the agricultural sector. The hurricane might further influence the agriculture and oil sectors, though it’s too soon to predict the extent of its impact.

We are watching Crude Oil (WTI) for a possible drop.  If Dorian goes West, the supply could be interrupted and we could see increases.

wti crude

Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 55.04
Take Profit 53.00, 52.00, 50.50
Stop Loss 56.60
Key Levels 50.50, 52.00, 53.00, 56.60, 57.70, 59.80
Alternative scenario
Recommendation BUY STOP
Entry Point 57.70
Take Profit 59.80
Stop Loss 56.60
Key Levels 50.50, 52.00, 53.00, 56.60, 57.70, 59.80

On the 4-hour chart, the instrument is trading in the lower Bollinger band. The price remains just below its moving averages that are directed down. The RSI is breaking down its longer MA. The Composite is testing its quite strong support.

WTI Crude Oil, D1

On the daily chart, the instrument is trading on the middle MA of the Bollinger Bands. The price remains just below its moving averages that are turning down. The RSI keeps testing its longer MA. The Composite is testing from above its longer MA as well.

Key levels

Support levels: 53.00 (local lows), 52.00 (local lows), 50.50 (June lows).

Resistance levels: 56.60 (local highs), 57.70 (local highs), 59.80 (June highs).

Trading tips

The price has retested its medium-term descending trendline. The fall is likely to continue.

Short positions can be opened from current prices with targets at 53.00, 52.00, 50.50 and stop-loss at 56.60. Validity – 3-5 days.

Long positions can be opened from the level of 57.70 with the target at 59.80 and stop-loss at 56.60. Validity – 3-5 days.

 

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