Crude oil prices were volatile on Wednesday as price initially tested a two-month low before recovering sharply to close the day flat. The volatility rose as the escalating trade wars are threatening global economic growth. Alongside the trade war narrative, supply concerns due to Venezuela and Iran are also adding to the concerns.
WTI Crude Oil Forming a Base at 57.50
Crude oil prices slipped back to the support area of 57.50 before posting a strong rebound. Price action remains anchored to the lower end of the support and could trade within the 60.33 and 57.50 handle for the moment. A breakout from this range will ascertain the next leg of the trend in prices. We expect the bias to the upside for a retest of 60.33 to establish resistance.
