Crude Oil – A Quick Trade Plan Focusing EIA Inventories Ahead
Arslan Butt • 1 min read
Crude Oil traded slightly bullish during the Asian & European sessions. Is it likely to continue the bullish momentum during the New York session? Well, it depends on the crude oil stockpile report later today. Buckle up for it…
API Inventories Report
One of the major reason of bullish moves in the Crude Oil is the stockpiles report from API (American Petroleum Institute). As per their report, the crude oil inventories reported a draw of -5.222M ahead of Christmas holidays.
EIA Crude Oil Inventories
At 15:30 (GMT), the Energy Information Administration will be releasing the inventories figures. It’s expected to report a draw of -3.6M vs. -5.1M in the last week. But, I think investors are pricing in the API report.
How to Trade EIA Report?
Since the – the 5.1M draw is already priced in, so any figure coming out from the EIA below -5M barrels can cause selling trends in the Crude Oil.
WTI Crude Oil – Trading Plan
Crude Oil is facing a strong resistance at $57.75 after having a bullish EMA crossover at $57.30. Crude Oil can reverse below $57.75 to target $57.25. While the break above $57.75 will lead the Oil towards $58.50. Now let’s wait for the data. Good luck!