EIA said that US oil inventory decreased 900,000 barrels in the week that ended at June 17. It was smaller than G5P Global Platts expectation at 1.4 million barrels. It was also lower than 5.2 million decreased reported by American Petroloem Institute (API) on Tuesday.

Technical Analysis:

Oil price has fallen to below 20 MA and 50 MA on hourly chart. 20 MA is still above 50 MA but it is falling as well as 50 MA. If oil price managed to break below 48.38, it may continue to fall to 47.80-47.32.

Note that hourly stochastic and CCI are oversold. Therefore, we can expect a pull-back move to the Fibonacci resistance at 49.45. In that case, watch for bearish signal confirmation around the resistance area with 48.88 as target and 48.38 in extension.

Be careful if the price managed to break above 49.45 because it possibly will turn the intraday bias to bullish and possibly will be followed by a bullish move up to 50.05-50.51.

Trading recommendation:
– Sell on break of 48.38; S/L at 48.88, T/P at 47.80 or 47.32
– Sell on a pull-back move to around 49.45; S/L at 49.70, T/P at 48.88 or 48.38

Good luck.

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