Crude Oil Trading Update – Strong Resistance Ahead

The EIA reported  yesterday that  Us Crude Oil inventories were slightly higher, with  l imports averaged over 7.7 million barrels per day last week, down by 300 thousand barrels per day from the previous week and 1.2 million barrels per day below the same four-week period last year.

Meanwhile, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 2.8 million barrels from the previous week.

In the last couple of month oil has increased by around $10. Crude Oil in today’s session has lost about 18 points. Demand for the commodity has increased lately and there seem to be the believe that further demand will continue in the month ahead.

Crude Oil is trading in a very strong resistance range from 95.70 to $90.03 a barrel. The recent rally from the lower $83 was expected as the commodity was oversold on speculation of weak global economic recovery.

The hourly chart is signaling down pressure on the commodity price. Which could go lower early next weak and settle around $94.68. Crude Oil could turn somehow volatile as long as remain within the $91.00-$99.00.

Short Term technical Indicators:

STOCHRSI(14) : Oversold

MACD(12,26) : Sell

ADX(14) : Sell

Williams %R : Sell

In contrast, looking at the daily chart there is more of a buying sentiment. It will take a few days before the commodity market agree in which direction crude oil will trend. Strong bullish v Bearish speculative traders should take place in the coming days till consumer confidence or more demand data are released next week.

Short term moving averages are also indicating a strong sell.

Long Term technical Indicators:

STOCHRSI(14) : Oversold

MACD(12,26) : Buy

ADX(14) : Buy

Williams %R : Buy

Long term moving averages are indicating a strong buy.

crude_oil_eia_chart

 

 

 

 

 

 

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