Crude Oil Retesting $71.22 – EIA Stockpile Report Up Next
The crude oil prices slipped back three-year highs as build in U.S. stockpiles and production continues to weigh on prices. During the U.S. session, the EIA will be releasing stockpiles report and we may have an opportunity to trade. Are you up for it? Here’s a trading plan…
WTI Crude Oil – Fundamental Outlook
Recalling FX Leaders May 16 – Economic Events Outlook, the API (American Petroleum Institute) reported a build of 4.854 million barrels vs. a forecast of the 763K draw. Can we expect the same from EIA?
Typically, I have seen a positive correlation between EIA and API reports. Today, the EIA is forecasted to show a draw in inventory figures by -1.1m vs. -2.2m previously. But you should be ready to see a build in inventories.
WTI Crude Oil – Technical Outlook
The crude oil is consolidating in the sideways channel of $70.25 – $72. Looks like the investors are not able to decide whether to short crude oil on the stronger dollar or go long on Iran’s issue.
Anyhow, crude oil is facing an immediate resistance at $71.20 and support at $70.85. I’m seeing a nice opportunity here to trade the breakout. Violation of $70.85 can lead the prices towards $70.25 while bullish breakout can drive buyers until $71.85.
WTI Crude Oil – Trading Plan
Fellows, I’m looking to stay bearish below $71.20 with a stop loss above $71.45 and a take profit of 70.35. Let’s wait for the news. Good luck!