A Day Worth Trading Crude Oil – EIA Report Awaited! - Forex News by FX Leaders

A Day Worth Trading Crude Oil – EIA Report Awaited!

Posted Wednesday, September 13, 2017 by
Arslan Butt • 2 min read

Today, the Asian trading session is quiet due to lack of fundamentals and volatility, but the scenario will change during the New York session today. Crude oil is what I'm focusing on today.

Quick Update on API Report

As per the latest American Petroleum Institute (API) inventory report, the Crude Oil inventories showed a build of 6.18 million barrels followed by a build of 2.79 million barrels the previous week. In response, the Crude Oil dipped to $47.70 but soon recovered to trade above $48.

EIA Crude Oil Inventories

At 14:30 (GMT), the Energy Information Administration is expected to release the Crude Oil inventories for the previous week. The data shows the change in the number of barrels of crude oil held in inventory by commercial firms during the past week.

The EIA report shows a correlation with the API report. For instance, if the API report recorded an inventory build of 6M, the odds are higher that the EIA will also report something near to this.

Well, if this happens, the Crude Oil may not have a sharp impact. In case the EIA reports a draw in inventories, we are going to see some serious bullish waves in the Oil.

Technical Outlook

The Crude Oil has traded sideways, so the technical outlook remains the same as before. It's still trading above the 61.8% Fibonacci Retracement at $47 but now has crossed above the 50- periods EMA at $48. Honestly, the hourly and 4-hour charts are messed up and showing no clear indication of direction. It's because the investors are waiting for some fundamental reason (EIA Report) to get in the market. Did you hear about news trading? Check out the FX Leader News Trading Strategy to get quick profits on fundamentals.

Crude Oil - Bullish Wave & Fibonacci RetracementCrude Oil – Bullish Wave & Fibonacci Retracement

At the moment, Crude can find support at $48.10 and $47.85. While the resistance can be found at $48.40 and $48.80.

Crude Oil Trading Plan

Traders, today we need to trade the choppy market before the release of the news. So, the idea is to stay in and sell below $48.40 with 20 pips stop and 35-40 pips take profit. On the flip side, I will be buying oil above $48.40 to target $48.80 and $49.20. Good luck.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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