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By: Ahura Chalki
The movement against of EIA and API
WTI drops below $56.50 after weekly EIA stock report. While the weekly reports both by the American Petroleum Institute (API) and the Energy Information Administration (EIA) this week showed larger-than-expected draws in the US crude oil inventories and market was waiting for sharp raising in the prices, especially after increasing the tensions, prices felt back down under $56. After decreasing of 3.5M barrels compared to the estimated number of 1.9 M barrels, the EIA report also confirms declined by 2.73M barrels in this week, comparing the market expectation for a draw of 1.9M barrels. Fundamental data signaling bullish expectation, while in fact, price dopes more, we have to wait and see when technical indicators changing back to bullish as well.
From the technical side, price is exactly on its EMA50, at $55.36, but still, candles are above the line, while they are clearly are forming under Parabolic SAR dots, in harmony with RSI and Stochastic, having bearish signal in the H4 chart.
Pivot point: 56.00
Resistance levels: 56.55 / 57.57
Support levels: 55.00 / 54.50
The expected trading range for today is between 55.00 support and 57.57 resistance.
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