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By: Ahura Chalki
Why WTI ignoring EIA report?
Yesterday, the EIA report also was much more than expected. The Energy Information Administration’s report, confirms increasing the US Crude Oil Inventories by 3.355M barrels, comparing the 2.831 barrels of expectation. The report came after the API report, which was also showing the same. However, USOIL started ignored the report, after that its one dollar falling overnight. By starting the Asian season, breaking news from china that they are willing to cut tariffs on some goods imported from the US by half (Reuters) and the bulls in the Asian stock exchanges for the third day in a row, WTI also returned from its down move to test $52 and above.
On the other hand, yesterday’s PMI data generally was positive which again supports the relative optimism on global economic growth.
In the end, coronavirus still spreading and dead numbers now about 600 persons, including two cases out of China, which can limit the bulls.
WTI technical analysis:
Technical indicators in the H1 chart returned to the positive side. At the moment, USOIL trading at $52.15, which sits at 200 H-MA as well as upper band of BB. Crossing this level above can confirm the bulls in the short term, however, longer-term bullish needs to close above $55.30.
Pivot point: 50.96
Resistance levels: 52.40 / 53.25
Support levels: 50.10 / 48.67
Today, the expected trading range is between 48.67 support and 53.25 resistance.
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