With this week’s inventory cycle rapidly approaching, WTI crude oil has entered a consolidation phase near $56.00. Buyers and sellers are duking it out in this area to decide the intermediate-term direction for the crude oil market. At this point, it appears that neither side is getting much of an upper hand.

Once again it is Tuesday, and that means the weekly inventory reports are on deck. Here is what the markets are expecting from this round of data:

Event                                           Projected     Previous

API Crude Oil Stocks                      NA                -1.401M

EIA Crude Oil Stocks                  -6.326M           -3.116M

The seasonality of refined fuels demand will play a key role in this week’s figures. Summertime travel in the Northern Hemisphere places added pressure on crude oil supply ― be on the lookout for inventories to decrease with industry estimates and WTI crude to see some bids.

September WTI Crude Oil Enters Rotation Near $56.00

For the third straight session, September WTI crude oil futures are in rotation near $56.00. Coming off of back-to-back daily Doji formations, one has to wonder if this market is poised for a directional move. 

Here are the levels to watch for the near future:

• Resistance(1): Bollinger MP, $57.52
• Support(1): 62% Macro Wave Retracement, $54.77
• 2-Way Catalyst, $56.00

Overview: Aside from $56.00, the key number for September WTI crude is the 62% Macro Wave Retracement at $54.77. As long as this figure holds up as downside support, the daily uptrend of June remains technically valid.