WTI crude oil could be in for a big reversal as price forms an inverse head and shoulders on the 4-hour time frame. Price has yet to break past the neckline around the $55 per barrel mark before confirming an uptrend. The 100 SMA has already crossed above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. Price is also finding support at the 100 SMA dynamic inflection point and might also encounter buyers at the 200 SMA. Stochastic appears to be turning higher without hitting the oversold region, suggesting that buyers are eager to return. RSI has some room to head further south but is also pointing up to signal the presence of bullish momentum. Crude oil is edging slightly higher due to the crisis in Venezuela as this could limit the country’s production and ease global supply. Keep in mind that the OPEC output deal is already in force, which means that fewer barrels than usual are already being pumped to the market. Also, the US government imposed sanctions on Venezuelan state-owned oil firm PDVSA. Data on US stockpiles from the API and EIA would likely determine whether crude oil could go for an upside break and sustain its climb this week. Larger than expected draws could signal that demand is keeping up, thereby boosting prices, while a surprise build could revive oversupply concerns. Overall market sentiment is also in play, with trade tensions resurfacing and weighing on business outlook. In turn, this hurts demand for commodities and drags prices down. Any sign of positive developments between the US and China, however, could revive risk taking and market appetite for crude oil.

SOURCE : https://tradertalks-net.translate.goog/s/2?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp