U.S. West Texas Intermediate crude oil futures are trading higher shortly before the regular session opening. Short-term oversold conditions as well as signs of tightening supply are helping to underpin the market. Optimism over increased future demand because of a potential deal between the United States and China is also providing support. However, gains are likely being capped because of worries over slower U.S. factory activity and rising U.S. production.
Current Trend (Up Trend)
The main trend is up according to the H4 chart. After reaching the level of 4125 price felt 3916 level and bounce from EMA 75 to 4117, but not able to make new high and price again came to EMA 75 at the price 3953 which is higher the previous low.
If we see daily chart, crude oil price is running below EMA 200, which means its still down trend and EMA 50 is below EMA 200. In daily chart price is trapping between EMA 200 and EMA 20 last few days.
Pattern and Range (Ascending Triangle)
Above the H4 chart crude price look like forming a ascending triangle. If price not able to sustain below 3953, probability to bounce 4100 which is a strong resistance.
Support and resistance
Resistance levels: 4078, 4145
Support levels: 3900, 3992
Long position above 3960
Stop Loss 3900
Short position below 3940
Stop Loss 3992