Oil prices is under pressure today as the benchmark US oil fell to the lowest level in two weeks. The slump occurred after data showed that there was a rise in US domestic oil supply to all-time highs last week.
WTI oil price for May contract fell as much as 1.44% to around $ 37.77, which was the lowest level since March 16.
Yesterday, the US Energy Information Administration reported that US crude oil inventories has increased as much as 2.3 million barrels to all-time highs at 534.8 million barrels. This of course worsens the oil global oversupply condition.
Technically, oil price currently is under heavy pressure in intraday outlook. 20 MA and 50 MA is still falling on hourly chart and the price is moving below the MA, testing the intraday key support at 37.56. If the support breaks, oil price possibly will fall deeper to 36.95-36.43.
However, hourly stochastic and CCI are rising. Therefore, there could be a pull-back move. In that case, watch for bearish signal confirmation on a pull-back move to within the Fibonacci resistance area at 38.42-38.96 with 38.09 as target and 37.56 in extension.
Be careful if the oil managed to break above the resistance at 38.96 because it will turn the intraday bias to bullish and possibly will push oil price up to 39.24 or 39.82.