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By: Ahura Chalki
Oil denies optimisms.
Despite trade talk and Brexit optimism, Oil lost the rate, even if the S&P 500 index printed a new record high of 3,044.08. Traders are likely waiting for today’s API and tomorrow’s EIA reports to make a decision. Yesterday, while before the US season, Oil even tested a $56.90, by the US season, the downtrend started to test $55.50 overnight, by losing about 0.58%. As of writing, USOIL is trading around $55.60. As most analysts estimating lower than expected in the US inventories, even if it is trading in the negative zone, the market is still optimism about raising the prices.
While the USOIL is trading around $55.60, immediate resistance and support levels are sitting at 56.20 and 55.40. Technical indicators have mixed signals. Parabolic SAR still supporting the bears in the H4 chart, while RSI moves at the natural zone, by sticking at 50-level. Stochastic also supporting the bears in the H4 chart, while in the H1 chart, most of the technical indicators remain of more bearish and Stochastic starting the correction signal by raising from the oversold area under 20-level.
Pivot point: 55.96
Resistance levels: 56.36 / 57.30
Support levels: 55.03 / 54.63
Today the expected trading range is between 54.63 support and 57.30 resistance.
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