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By: Ahura Chalki
EIA reported 1.6M increase and WTI to $54!
US crude oil inventories increased by 1.6M barrels by EIA report and it edged the prices under $54, later in correction it moved above $55 and now trading a bit under $55, at $54.90. Less demand following slow economic growth all around the globe put more pressure on Oil prices. Future Oil prices will depend on stock market changes and the central bank’s decisions. President Trump tweeted “’The Fed has got to do something! The Fed is the Central Bank of the United States, not the Central Bank of the World.’ on Wednesday. Now we have to see the FED reaction since Mr. Powell believes that the US economy is healthy enough and just needs to take care of external hazards which may affect the US economy. For now and with what we see in the market, Oil has not enough power to raise more, the future of Oil prices is not so bright. Maybe OPEC got to do something?
From the technical side, while Parabolic SAR in the H1 chart has bullish signal, RSI with moving under 50-level, confirms the bearish signal of Stochastic, where its signal and mainline, both are returning back from the overbought area in the downtrend move.
Pivot point: 55.12
Resistance levels: 56.33 / 58.00
Support levels: 53.45 / 52.24
The expected trading range for today is between 52.24 support and 56.33 resistance.
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