Crude Oil Ready For A Bullish Breakout – Inventories In Focus
Arslan Butt • 1 min read
Since this morning, the crude oil has traded mostly unchanged around $53 after a sharp fall yesterday. Despite all the global uncertainty, investors failed to support the falling oil prices.
Yesterday, the Energy Information Administration (EIA) reported a decline in crude oil inventories by 2.17 million barrels over the previous week. A drop in inventory figures was supposed to underpin oil prices, however it thoroughly disappointed.
Additionally, the EIA’s record revealed that last week the U.S. crude production rose by 36,000 barrels/day. The increase in production results in more supply and ultimately a fall in prices. The EIA also said that they are expecting record crude oil production from the United States in the year 2018.
WTI Crude Oil – 30 Mins Chart
Forex Trading Signal
Honestly, today the market is at all not volatile. However, we still have something for you. Looking at the hourly chart, we can see the prices are crossing above 50 periods EMA along with the RSI. This double crossover is suggesting a good buying trade in the oil.
I recommend that investors take up a buying trade above $53, along with a stop loss below $52.80 and a take profit at $53.25.