The American Petroleum Institute (API) reported that crude oil supply declined as much as 7.6 million barrels last week. It marked the third weekly declining in a row.

Traders should watch US crude oil inventories on Wednesday at 14.30 GMT, which is expected to add 1.1 million barrels after declined 1.9 million barrels last week.

Technical Analysis:

Oil price currently is testing intraday resistance area at 49.27. If the resistance breaks, oil price possibly will continue its rally up to 49.61-49.98.

Note that hourly stochastic and CCI are overbought. As alternative, you might want to look for bullish signal confirmation on a pull-back move to within 48.93-48.56 with 49.27 as target and 49.61 in extension.

Be careful if the price managed to break support 48.56 because it will turn the intraday bias into bearish and possibly will be followed by bearish move to 48.39-48.18.

Trading Plan:

– Buy on break of 49.27; target at 49.61 or 49.98
– Buy on bullish signal confirmation within 48.93-48.56; target at 49.27 or 49.61

Oil Chart:

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