Intraday Bias For Crude Oil Is Bullish

US crude oil inventories rose by 4.1 million barrels to 483.11 million barrels as announced by the US Energy Information Administration (EIA), far above forecast 0.9 million barrels. Meanwhile, uncertainty over OPEC compliance with planned output cut is ongoing.

Technical Analysis:

Intraday bias for crude oil currently is bullish. A small correction is seen on hourly chart, approaching the support area at 51.48-51.96. Note that hourly stochastic is almost oversold. For today, I plan to look for buy signal confirmation on a pull-back move to within the support area with 52.26 as target and 52.75 in extension.

Be careful if the market managed to break the support 51.48 because it will turn the intraday bias to bearish and possibly will push oil price down to 51.18-50.69.

Plan: Buy within 51.48-51.96; target at 52.26 or 52.75

Oil Chart:

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