WTI Crude Oil Testing $69.50 – EIA Stockpile Report In Highlights

According to the American Petroleum Institute, the WTI crude oil inventories dipped by 6 million barrels in the week of Aug 3 to 407.2 million. Our forex trading signal on WTI crude oil did really well as we make about 130 pips on the release of EIA report. Are you up for taking another position today?
Crude oil fundamentals support the bullish trend as the sentiments of U.S. sanctions on Iran are pushing the crude prices higher. Iran is the third biggest producer among the members of the Organization of the Petroleum Exporting Countries (OPEC) and ships out nearly 3% of global demand in September. The sanctions are putting oil consumers in panic, therefore, they have already increased their bets on oil.

Today at 15:30 (GMT), the Energy Information Administration is due to release the stockpile report. Economists are expecting a draw of -2.8M vs. 3.8M in the previous week.

WTI Crude Oil – Technical View

On the 4-hour chart, we can see a formation of an ascending triangle pattern which was supporting crude oil near $69 along with a resistance up at $69.45. The prices are holding below 100 periods moving average which is another signal of bearish bias of traders.

The momentum indicators, RSI and Stochastic are trading below 50, representing selling sentiment of investors.

WTI Crude Oil – Trade Idea

Today the idea is to keep a close eye on $69.45 as we can see a bearish trend below this. The bullish breakout can lead the price towards $70.40. Good luck!