In the late European session, crude oil fell for the second time, placing an intraday low of $47.055. It's been trading bearish because of over supply concerns. The increased supplies create a bearish sentiment, whereas, the dip in supplies creates a bullish sentiment in the Crude oil.
A few minutes back, the Energy Information Administration (EIA) published the inventory figures, demonstrating an increase of 4.95 million barrels in the previous week. However, the economists expected the figure at around 2.2 million barrels. This is why we have seen a sudden drop in the prices of crude oil.
WTI Crude Oil – Hourly Outlook
Currently, the crude oil is holding right above a double bottom support level of $47.25. Candlesticks with long shadows and small bodies signal a weakness in the selling trend. Stochastic, the leading indicator, has fallen below 20, representing that the black gold has entered oversold territory.
Not only that, the WTI crude oil has formed a descending triangle pattern in the 4-hour timeframe, which is proving support at $47.25 and a resistance at $48.65.
Crude Oil Signal: Fellows, if the crude oil manages to hold above $47.25 then we take a buying position with a very tight stop loss of $46.95 and a take profit of $48.55.