WTI & EIA weekly report


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WTI analysis – 22 April 2020

By: Ahura Chalki

Every Wednesday, eyes return to EIA weekly report. In the past three weeks, Oil inventories always raised up to break the highest ever record of 19.248M, in the 15, April weekly report, for the week ending on 10, April. For today, the expectation is a bit more than 15M, which means with lower production in the American petroleum companies, inventory levels also must be ease.

Market outlook for coming weeks still is about weaker demand while the main producer, still could not agree on any specific plan to avoid the current messed-up market, since there are plenty of barrels, which have nowhere to go.

Despite green boards in the Asian stock markets, as well as Futures, overnight correction form yesterday low of $6.40 to $14.10, in the early Asian season, could not take a long and bears toke the market control to lead it lower towards $10.72.

For now, still, there is no news or any specific announcement that can support the WTI market.

WTI technical overview – H1

20 HMA at 13.00 is the current resistance, while technical indicators supporting the bears, with RSI that gets farther from the oversold area, moving at 30. However, Parabolic SAR forming its dots under the candles, signaling of correction at this level. A future downtrend can go lower as yesterday low at $6.40, with increasing inventory reports, while $13 will be in the spotlight in case if we can see a decline in the US inventory level of Oil.

Pivot point: 13.00

Resistance levels: 13.75 / 14.76 /16.00

Support levels: 11.50 / 10.00 / 8.52

Today, the expected trading range is between 8.52 support and 14.76 resistance.

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