WTI OIL Outlook: Oil Price Holds Positive Tone ahead of Crude Inventories Report

Technical analysis of Forex market

WTI oil price holds steady on Wednesday, following strong upside rejection on Tuesday and subsequent fall that was accelerated by strong build in US crude stocks (API report showed 6.8 mln bls build vs expected rise of 1.5 mln bls).

On the other side, escalation of crisis in Venezuela and tightening US sanctions on Iran, partially offset negative impact from weak crude stocks data. Daily techs are still mixed but stochastic reversed higher, momentum is flat and rising 30SMA repeatedly contained pullback from new 2019 high at $66.58, generating initial signal that corrective action might be over.

Focus turns towards EIA crude inventories report (1.4 mln bls build f/c vs previous week’s rise of 5.4 mln bls).

– advertisement –

Better than expected release would add to support from political unrest in Venezuela that threatens for stronger disruption in oil supply.

Close above pivotal barriers at $63.92/$64.02 (Fibo 38.2% of $66.58/$62.27 pullback/20SMA) would generate strong bullish signal for extension of recovery from $62.27 low towards pivotal barriers at $64.42 (10SMA) and $64.93 (Fibo 61.8%).

Rising 30SMA ($62.72) continues to underpin and guards correction low at $62.27.

Sustained break below these supports would generate strong bearish signal for extension of corrective leg from $66.58 high.

Res: 63.92; 64.02; 64.42; 64.93
Sup: 63.08; 62.72; 62.27; 61.81

Signal2forex reviews