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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.

4 hour chart

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 !