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By: Ahura Chalki
EIA and trade optimism on two opposite sides!
Yesterday, while WTI was trading above the key level of $57.30 following missing API report, that, the Energy Information Administration’s (EIA) published the weekly change in the number of barrels of commercial crude oil held by US firms, which rose by 2.219M, better than expected of 1.649M and it was good enough to push more pressures on Oil price to fall under $57 from its daily high at $57.80, however the trade optimism still on and it was the reason of recovering from its daily low at $56.70, back above $57. Asian Stocks green lines earlier morning must help the WTI price to be steady around $57 until clear news from the trade deal. However, if it takes longer, positive EIA data and today’s economic data from the US can send the price deeper.
Trading above $57, as its psychological level with confirmation of key resistance at $57.30 is the clear signal for more bulls, while breaching $56.30 can change the trend, trading between these levels until the US market opens is more likely as side movement. Technical indicators in both H1 and H4 charts remain of side movement at this level.
Pivot point: 57.10
Resistance levels: 57.51 / 58.21
Support levels: 56.40 / 56.00
Today the expected trading range is between 56.00 support and 58.21 resistance.
Risk Warning: Trading-Leveraged Products such as Forex and Derivatives may not be suitable for all investors as they carry a high degree of risk to your capital. Please ensure that you fully understand the risks involved, taking into account your investment objectives and level of experience, before trading, and if necessary, seek independent advice.