A Day Worth Trading Crude Oil – EIA Report Awaited!
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.
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 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.