Current trend

On Thursday, the instrument slightly strengthened, despite API and EIA data, reflecting a significant increase in commercial oil reserves in the United States. According to yesterday's report by the Ministry of Energy, oil and petroleum products reserves in the United States rose by 10.27 million barrels over the week, while experts at Bloomberg predicted growth of no more than 3.2 million barrels. Today it is the eighth weekly increase in a row. The data of the Ministry of Energy, as well as the data of the American Petroleum Institute, published the day before, indicate a strong market glut.

Today at 20:00 (GMT+2) the publication of the Baker Hughes report on active oil platforms in the USA is expected. If the drilling activity in the states continues to grow, then WTI will break down the psychological support of 55.00 and continue to decline.

Support and resistance

On the 4-hour chart, the instrument was corrected to the middle line of the Bollinger Bands, which is the closest support level. The indicator is directed downwards, and the price range is narrowing, indicating a continuation of the downward correction. The MACD keeps a strong sell signal. Stochastic is going to enter the overbought area, a sell signal can be formed during the day.

Support levels: 54.39, 55.46, 56.60.

Resistance levels: 58.04, 59.11, 61.01, 62.45, 64.55, 66.41.

Trading tips

Short positions should be opened at the current price with the target at 54.60 and a stop loss at 57.65. Implementation period: 1 day.

Long positions can be opened above the level of 57.40 with the target at 59.35 and a stop loss at 56.30. Implementation period: 1-2 days.

WTI Crude Oil

BuySellSpread
4645.9190

Scenario

TimeframeDay's Range
RecommendationsSELL
Entry Point57.35
Take Profit54.60
Stop Loss57.65
Support levels54.39, 55.46, 56.60, 58.04, 59.11, 61.01, 62.45, 64.55, 66.41

Alternative scenario

RecommendationsBUY STOP
Entry Point57.45
Take Profit59.35
Stop Loss56.30
Support levels54.39, 55.46, 56.60, 58.04, 59.11, 61.01, 62.45, 64.55, 66.41
WTI Сrude Oil: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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