Oil was under pressure in Asia and Europe session but rose in New York session thanks to report from Energy Information Administration (EIA). The report showed that US crude stock fell 2.3 million barrels in the week that ended at July 15. The report is similar with the report from American Petroleum Institute which was released earlier.

Oil was under pressure after Russian Minister of Energy said that they are not coordinating with OPEC about production level in order to reduce global oversupply problem. Russian oil output this year is expected to reach the highest level in 30 years.

Technical Analysis:

Oil price is testing intraday resistance at 45.93-46.36. Note that the intraday bias remains neutral for a while. Hourly stochastic has crossed up but CCI is already overbought.

As intraday trading scenario, we can look for bearish signal confirmation within the resistance area with target at the intraday support area at 44.92-44.54, but be careful if the price managed to break above 46.36 because it will turn the intraday bias bullish and possibly will be followed by bullish move up to 46.79-47.27.

Trading Plan:

– Sell on bearish signal confirmation within 45.93-46.36; S/L: 46.55, T/P: 44.92 or 44.54

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