Sideways Range of Crude Oil – EIA Fails to Surprise!
Arslan Butt • 1 min read
In our previous update on crude oil, we focused on the EIA report. Crude oil traded sideways in a trading range of $50.50 – $51.50. As per the Energy Department, the US crude inventories fell by -1.2 million barrels versus forecasts for -3 million-barrel. The draw in inventories failed to drive bulls in the dollar as the market already priced in -10M draw based upon the API report. So the investors are depending on the technical analysis to predict further movements in the market.
WTI Crude Oil – Technical View
On the 2 hour chart, crude oil has already completed 61.8% retracement near $52.50. The price is below 50-periods EMA, which signifies a selling bias of traders.
Stochastics is holding below 20, in the oversold region. It means, sooner or later we may see bulls taking control. At present, the major resistance is found at $51.45 and the break above is likely to lead oil prices towards $52.75 and $53.10.
On the other hand, crude oil has the potential to go for $49.50 on a violation of $50.50.
All the best!