WTI Crude Oil – tactical sell
WTI is playing around 63.30 during the early Asian session this morning. A day earlier, the EIA released the US crude oil stock report (dated to the week of April 26 ) and it indicated that the inventories rose to the highest levels since almost two years. This is a serious sign of supply increase – all despite limiting factors as Venezuela crisis and Iran sanctions.
At the same time, cautiously expected soonest signing of US-China trade deal has a positive impact to crude prices, as China is the world’s largest crude oil consumer. Also, markets now expecting for Friday’s monthly employment data to identify the midterm-sentiment.
Technically, further decline is more than likely. Rally attempts are capped by double resistance cluster at 64.30 and 64.60 – and this is a barrier that has been tested and sustained. Price will need to have serious bullish impulse to overcome this resistance and resume rally, if any.
At the same time, down-move below has more probability and I am playing my tactical short at current levels with take profit at approximately 61.30. This support is the lower bottom of “priceline space” and normally serve as a strong support capable to produce a significant bounce on H4 charts.
Have a nice day !