Bullish Breakout in Crude Oil – EIA Figures Ahead!

During the Asin sessions, Crude Oil continues to trade sideways after closing our forex trading signal at break-even. The market is muted, perhaps the investors are waiting for the EIA report later today. Here's a trading plan.

Update On API Report 

According to the American Petroleum Institute (API)  report, it recorded a build of 2.79 million barrels. Was it supposed to be bearish on news? Actually, the economists were expecting a build of 4 million barrels but the actual was well below the forecast.  

EIA Report Today

Today, we need to focus on the EIA inventories which are due to release at Crude Oil Inventories 15:00 (GMT).

Previous: During the previous week, the EIA reported a draw of 5.4 million barrels.

Forecast: The inventories are expected to show a build of 4.1 million barrels.

How to Trade EIA Report?

As the API and EIA reports are highly correlated. These often show identical figures. However, we can only benefit if the EIA reports show a divergence.

Let's say if the EIA reports show a draw in the inventories (up to -2M), there will be a bullish spike in the Crude Oil prices for nearly 50 pips. Conversely, the build-up in inventories (up to 6M) will cause sharp selling of nearly 60-100 pips. Refer to FX Leader How to Trade the News Strategy to ensure profitability.

WTI Crude Oil Trade Plan

For now, investors are advised to wait for the U.S. session to trade the EIA Report. Today, below $49.25 Oil has the potential to go for $48.50 and $48.20. Whereas, the break above $49.30 will give us a buying opportunity until $49.90.

Keep visiting us for free forex trading signals and learn How to Use Free Daily Forex Signals to ensure you don't miss any trade. All the best and trade with care.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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