Crude Oil Futures (WTI) are at $53.94 per barrel, and they have a strong support between 53-54 levels. Interesting fact is that in last 17 trading sessions, the crude oil futures have done a green closing on only one day, and that the was day of the massive spike up after the supply disruption at Saudi Aramco refinery.
WTI Crude Oil Price Outlook:
Crude Oil Futures should retest 56 at least once in Oct 2019. A retest of 57 is also possible, but there will be constant selling pressure on each upmove.
Our crude oil trading strategy of buying on corrections and selling on rallies has restarted this week, and we have bought at 54, for target 56 and stop loss 51.
More buying can be done between 53-54 levels, because crude oil should find support at current levels for a pullback rally towards 56.
Please Note: In case of any new supply disruptions, we will see another spike towards 59-60 levels.
Crude Oil Futures have been correcting almost daily since the large spike in prices on 15-16 Sep 2019 after the accident at Saudi Aramco refinery, which has about 5% of global capacity. That price spike was mostly on short covering and with the assurance from Saudi Aramco that their refinery output will be fully restored by end of Sep 2019.
WTI Crude Oil Futures are bullish above $54 per barrel, and they have already formed a strong base at 50-52 level. Brent Crude also has bullish outlook above $60 per barrel.
As shown in the above chart, there are multiple trend lines offering support to prices between 53-55 levels. These are suitable levels for buying for 1 dollar gain per trade.
Our Crude Oil Futures Trading Strategy is to buy at all levels between $50-55 per barrel, for selling between 55-57 levels. These trades are likely to restart from October first week. We will consider 50 as the absolute stop loss for all long positions.
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