WTI Crude Oil Inventory Reports On Deck

The short holiday week has mixed up the schedule facing the crude oil markets. After an abbreviated President’s day futures session, both the API and EIA crude oil inventories reports are due out a day later than usual. If you are trading WTI futures or the USOIL CFD, be sure to note that the API number is due out today at 4:30 PM EST and the EIA release will come at 11:00 AM EST tomorrow.

Following a strong Monday, bears have entered the WTI market in force. For the session, April crude futures are moderately in the red, off of lows established beneath the $61.00 handle.

WTI Crude Technicals

It has been a seesaw month for oil, featuring a dramatic test beneath $60.00 and subsequent rally. The futures contracts for WTI remain upside down, meaning it is cheaper to buy one lot of June crude than it is to purchase April crude. This illustrates the prevailing sentiment that a prolonged downtrend in energy pricing is probable for 2018.

Thus far, April crude has faltered at topside resistance. Here are the key levels for the remainder of the session:

• Resistance(1): Bollinger MP, $61.86
• Resistance(2): 20 Day EMA, $61.86
• Resistance(3): 50% Macro Retracement, $62.15

Overview: As of this writing, price is rotating near $61.50. A key area of topside resistance between $61.86 and $62.15 will likely serve as the session high. With no valid support in the immediate vicinity, we may be poised to test $60.00 in the near future.

For now, I have a bearish bias toward this market and expect price to rotate between topside resistance and the $60.00 level. Ultimately, the coming inventory reports will drive participation and determine the intermediate-term trend.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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