Divergence in the WTI, Bulls Awaited
Dave Green • 1 min read
Let's review what's going on in the market. If you recall from our report earlier today on the WTI, the crude oil continued to trade below $53.15, achieving the suggested target levels of $53.3 and $52.57.
At the movement, we can see a major bullish trend line resistance at $52.75 in the 1-hour time frame. We can expect the WTI to pull back above this level to target the $53.20 and $53.45 levels.
Alternatively, if it violates the $52.75 level downward, the WTI will aim for $52.45, as well as $52.10.
Besides that, the investor’s focus also remains at the Energy Information Administration (EIA), as it's about to release crude oil inventory updates at 15:30 (GMT) with an expectation of a 1.5M increase, which is lower than the previous figure of 2.3M.
I would recommend buying WTI, but only above the $52.75 level with an initial target of $53.20 and then $53.45. Aside from that, sellers will be looming below $52.70 to drag the crude oil towards $52.45.