U.S. Session Trade Setup: WTI crude oil set for retracement!
|The WTI crude oil prices flashing red and dropped to $25.28 after Saudi Arabia and Russia delayed a meeting to discuss output cuts that would help to reduce the global oversupply. WTI crude oil still in red territory, as the long-lasting dispute between the top exporters Saudi Arabia and Russia is keeping traders cautious. The WTI crude oil is currently trading at 27.22 and consolidates in the range between the 25.41 - 28.24.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, is expected to meet on Thursday instead of today, to discuss cutting production.
The decline in the oil prices could be attributed to the decision by Saudi Arabia and Russia to delay the planned emergency meeting to discuss output cuts to Thursday from Monday. Whereas the Kingdom will host the meeting through video conference, and the decision of the delay was taken to provide more time to bring more producers from all over the world.
Technically, the WTI crude oil trading slightly bearish on Monday after testing double top resistance around 28.56. On the 4 hour chart, crude oil has formed a series of selling candles that are likely to lead crude oil prices until 26.35. Violation of this level can open further selling trend until 25.45 level as the RSI is crossing 50 levels from the upper side to the lower side. Let's look for selling trades below 26.80 today with a target level of 25.60 and stop-loss over 27.20.
| Support | Pivot Point | Resistance |
| 26.76 | 28.56 | 32.07 |
| 23.25 | 33.87 | |
| 17.95 | 39.17 |
WTI crude oil – Trade Setup
Sell Below: 26.80
Take Profit: 26.20/25.60
Stop Loss: 27.20
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