Crude Oil - Supplies

Crude Oil Bounced off 50% Fibonacci Level – What’s Next?

Posted Thursday, April 26, 2018 by
Arslan Butt • 1 min read

U.S. crude oil continues to trade bullish despite an unexpected rise in crude oil inventories last week. What’s going on here and what can we expect from crude oil now? Let’s find out…

WTI Crude Oil – Fundamental Outlook

On Wednesday, the EIA (Energy Information Administration) reported a build of a 2.2m barrel vs. a previous draw of 1.1m and a forecast of a 1.6m draw. As I explained in my previous update, WTI Crude Oil Gains Support above 67.50, there’s a positive correlation between the EIA and API reports. On Tuesday, the API (American Petroleum Institute) reported a build of 1.099m barrels vs a previous draw of 1.047m. Having said this, the rise in crude oil inventories was already priced in and the market reversed back after a slight dip to $67.25.

 

WTI Crude Oil – Technical Outlook

At the moment, crude oil is trading above the 50% Fibonacci retracement level which is supporting this commodity above $67.25. This level is important because the 50-period exponential moving average is also supporting this price zone.

Crude Oil - 240 - Min Chart

Overall, oil prices are playing in a choppy range with an upper limit of $69.45 and a lower limit of $67.25. So, the idea is to go with the flow. It will be nice to stay bearish below $69.50 while remaining bullish around $67.50. Good luck!

Check out our free forex signals
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt is our 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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of