Sideways WTI Crude Oil – Get Ready for a Big Move!
Arslan Butt • 1 min read
This week, the Crude Oil has traded sideways in the same trading range recommended in our earlier updates. But today, the Oil has formed a perfect trading setup to trade the EIA inventory reports today. Let's check it out …
API Report – Overview
As per the latest American Petroleum Institute (API) inventory report, the Crude Oil inventories showed a build of only 1.44 million barrels followed by a build of 6.181 million barrels the previous week. The response remained muted as the data wasn't much surprising.
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 is expected to show a build of 2.8 million barrels. If the EIA report shows a draw in weekly inventories rather than build, we are going to see a breakout in the WTI trading range.
I don't see much changes on the technical side of the market. The Crude Oil is trading in a narrow trading range of 100 pips ($49.30 – $50.30). The 4-hour chart is neutral and will give us an opportunity to trade the breakout in the U.S. session.
Crude Oil – Daily Chart
Currently, the Oil has a support at $49.80 and $49.40. While the resistance is found at $50.45. Today, on the release of EIA report and a draw in inventories, Oil can break upward to give us an opportunity to capture 60- 100 pips. Refer to the FX Leader News Trading Strategy to get quick profits on fundamentals.
Crude Oil Trading Plan
I'm placing my buy stop at $50.45 with a target of $50.85 and $51. Below $50.45, the target is $49.40. Good luck.