The word of the day is FED. In the lead up to the FOMC announcement at 2:00 PM EST, WTI crude oil futures are quiet. Of course, that is likely to change as we move into the close of the U.S. session.
Â
EIA Inventories Release
Crude oil saw heavy action earlier today surrounding the EIA Stocks report. Inventories came in at -7.208 million barrels, way below the projected -2.629 million. The discrepancy only produced a moderate 39 tick one-minute pop to the bull. Within the half-hour, pricing quickly returned to the overnight value level.
1 Minute Rally On EIA Report
The lack of sustained buying is a bit of a shock given the dip in crude oil stocks. No directional move on an important fundamental number adds skepticism to the current daily uptrend.
Â
Technicals
A 60-minute chart for September crude oil futures gives a good picture of how depressed price action has been today. Currently, we are trading inside of the 60-minute bar formed on the EIA release. So far, the market has been noncommittal above Tuesday’s high of 48.66. Buyer beware.
60 Minute Crude Oil-Session Outlook
However, price remains above 38% of Tuesday’s range. This is a big bullish sign for me, as it shows that the current daily uptrend has not yet been compromised. Compression at current levels going into the FED announcements is not a negative. The market is clearly in "wait and see" mode.
As we move into the close, things can turn on a dime. The key 38% level of Tuesday’s range provides a concrete stop out for anyone holding longs. If the price stays above $47.79 for the session, we are still on schedule to test $50.00 in the short-term.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals