Our forex trading signal on the black crack worked out great! After closing the signal in profit, I placed a buy limit at $46 but unluckily the oil missed our pending order by just 8 pips. No worries, it's all a part of the game.

Our new trading signal in crude oil seems to be in danger. It looks like speculators are lowering their positions on crude oil before the expected stockpiles of data from the EIA.

The latest American Petroleum Institute (API) inventory figures showed a build of 1.63 million barrels following the draw of 8.13 million barrels last week.

Our trade is highly dependent on the EIA (Energy Information Administration) inventory data which will be released at 14:30 (GMT). Economists are expecting a draw of -3.6 million barrels, which is below the -7.6 million barrel draw last week.  But, I'm more concerned about the API report for now. Since both of these reports are highly correlated, can we expect a build in inventories from last week? Only time will tell…

Crude Oil Trade Idea

For now, $46 is a crucial trading level. The idea is to stay in buying above $46 in order to target $46.35 & $46.75. While below $46, the target is likely to be $45.75 & even $45.40. All this depends upon the figures today!