- – Crude oil price is finding it hard to stay above the all-important $50 resistance against the US Dollar.
- – There is a major contracting triangle pattern with resistance near $49.70 forming on the hourly chart.
- – Recently in the US, the API Weekly Crude Oil Stock (08, August 2017) report was released.
- – According to the report, the Crude Oil Stock decreased by -7.839M compared with the last 1.779M.
API Weekly Crude Oil Stock Figure
Recently in the US, the API Weekly Crude Oil Stock report (08, August 2017) was released by the American Petroleum Institute industry. The market was positioned for a decline of around 4 million barrels on a weekly basis compared with the last 1.779M.
However, the actual result was on the lower side, as there was a decline of 7.839 million barrels. Next up is the petroleum report by the Energy Information Administration later today at 10:30 a.m. ET. The EIA Crude Oil stockpiles is forecasted to decline by -2.800M, compared with the last -1.527M.
Overall, the market may trade cautiously, and crude oil price may continue to range trade below $50 in the near term.
Oil Price Technical Analysis
After trading close to the $50.50 level crude oil price faced offers against the US Dollar. The price failed to remain above the $50 handle for a long time and later moved down. There was a close below the $50 handle and the price traded as low as $48.40.
Later, the price started consolidating in a range and moved above the $49.00 level. However, the price is struggling to trade above $49.50 and the 100 hourly simple moving average. There is a major contracting triangle pattern with resistance near $49.70 forming on the hourly chart.
The price recently traded below the 50% Fib retracement level of the last wave from the $48.62 low to $49.87 high. On the upside, there is a connecting bearish trend line on the same chart with resistance at $49.20.
As long as the price is below the $49.60 level and faces sellers near 100 hourly simple moving average, it may continue to consolidate in a range in the near term.Tags: Crude Oil, Oil, Oil Price, Oil Price Chart, Oil Price Technical Analysis, US Dollar