WTI Oil Outlook: Pullback Holds above 10SMA ahead of Oil Inventories

Technical analysis of Forex market

WTI oil price holds slight bid tone on Tuesday following double downside rejection ($63.02/11 on Fri/Mon) and Monday’s close above 10SMA ($63.45) which also formed Hammer candle, generating initial signal of stall of pullback from $64.77 peak. Repeated close above 10SMA today would reinforce signal and increase hopes of reversal. Bullish momentum and daily MA positive setup keep overall bullish structure intact and favor scenario of shallow correction ahead of fresh advance. Today’s repeated close above 10SMA and formation of second Hammer would confirm scenario. Traders focus release of American Petroleum Institute (API) crude stocks report, due later today and Wednesday’s release of official government report from Energy Information Administration for fresh signals. Expectations point to another build in crude stocks that will be the third consecutive increase, which would increase pressure on oil prices. Negative signals could be also expected from rising worries that Russia may pull out from agreement between top oil exporters, to reduce oil production and tighten oil market, on OPEC meeting in Jun

Res: 63.82; 64.77; 65.00; 65.37
Sup: 63.57; 63.02; 62.26; 61.85

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