EIA Stockpile Report Underpins Crude Oil – Quick Technical Outlook
Today, crude oil is gaining for the third consecutive day amid another drawdown in U.S. stockpiles. Meanwhile, signs that OPEC (Organization of Petroleum Exporting Counties) may not boost production to address contracting supplies from Iran also supported prices.
As per the EIA report, the crude oil inventories dipped by 2.1M barrels, compared with a forecast for a decrease of 2.7M barrels. The fall in inventories also signifies the increased demand for crude oil in the market. Perhaps, traders are pricing in the shrinkage of supplies in November, due to sanctions on Iran.
Support Resistance
69.91 71.59
68.8 72.17
67.11 73.85
Key Trading Level: 70.48
The technical outlook of crude oil remains bullish. For instance, crude oil is trading above 20 and 50 periods EMA (exponential moving averages), which is demonstrating the bullish bias of traders. The RSI also holds near 68 (>50), representing the bullish trend.
Crude oil is likely to face an immediate resistance near $71.65 and above this, oil can go for $72.75. Whereas, the bearish breakout of $71 can cause further selling until $70.25. Good luck!
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