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Crude Oil Update – Prices Tumble on API Build; EIA Report Next

By:
James Hyerczyk
Published: Mar 22, 2017, 11:10 UTC

May West Texas Intermediate Crude Oil futures are trading lower shortly before the regular session opening. Prices are expected to be under pressure on

Barrel Oil

May West Texas Intermediate Crude Oil futures are trading lower shortly before the regular session opening. Prices are expected to be under pressure on Wednesday due to another bearish report from the American Petroleum Institute late Tuesday. According to the API, U.S. crude oil inventories rose by 4.5 million barrels in the week ending March 17 to 533.6 million.

Today’s U.S. Energy Information Administration report is expected to show a 1.9 million barrel increase in inventory.

WTI Crude Oil
Daily May WTI Crude Oil

Technical Analysis

The main trend is down according to the daily swing chart. Earlier today, sellers took out $47.71, signaling a resumption of the downtrend. This could create enough downside pressure to trigger a move into the November 14, 2016 main bottom at $45.78.

Forecast

Based on the current price at $47.56, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at $48.14.

A sustained move under $48.14 will indicate the selling is getting stronger. This could create enough downside momentum to trigger a move into $45.78.

Overcoming $48.14 will signal the return of buyers with the next potential targets $48.50 and $49.14.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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