Crude Oil - A Quick Trade Plan Focusing EIA Inventories Ahead - Forex News by FX Leaders

Crude Oil – A Quick Trade Plan Focusing EIA Inventories Ahead

Posted Wednesday, December 20, 2017 by
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!

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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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