Oil prices slid slightly on Wednesday after a report eased concerns about tightening output, putting an end to the rally that took crude oil price to their highest since early November.

Inventories Report – EIA vs. API
The American Petroleum Institute announced late Tuesday that US crude supplies surged by 6.9 million barrels for the week ended April 19. The API also reportedly revealed a stockpile mounting to 2.2 million barrels for gasoline.

The EIA is due to report Crude Oil Inventories at 14:30 GMT later today with a forecast of 0.9M vs. -1.4M last week. This may add some bearish pressure on the crude oil prices today.

As you can see on the 4-hour chart, WTI crude oil is likely to face resistance at $66. Right below this level, oil has closed a Doji pattern which is suggesting weakness in the bullish sentiment.

The RSI is holding above 80 levels suggesting that the retracement is on the cards. The 50 periods EMA stays at $64, leaving enough room for a retracement.

Support Resistance
65.6 66.59
65.08 67.08
64.09 68.08
Key Trading Level: 66.08

I think it’s better to stay bearish below $66 with a stop loss above $66.25 and take profit of $65.40 and $65.15 today.

Good luck!