- – Crude oil price started a new downtrend and already moved below the $50.60 support against the US Dollar.
- – There are two important bearish trend lines forming with resistance at $50.40 on the hourly chart.
- – Recently in the US, the EIA Crude Oil stockpiles figure (Sep 29, 2017) was released by the Energy Information Administration.
- – As per the report, the EIA Crude Oil stockpiles were down -6.023M compared with the forecast of -0.467M.
EIA Crude Oil Stockpiles Report
Recently in the US, the EIA Crude Oil stockpiles report (Sep 29, 2017) was released by the Energy Information Administration. The market was looking for the EIA Crude Oil stockpiles to be around -0.467M compared with the last reading of -1.846M.
However, the actual result was better than the forecast, as the EIA Crude Oil stockpiles were down -6.023M compared with the forecast of -0.467M. Moreover, the Crude exports were up sharply to 1.98 million bpd, which was a lot higher compared with the previous week’s the 1.5 million bpd record.
It seems like Crude oil price struggle might extend in the short term and the price might attempt a move towards $49.00 in the near term.
Oil Price Technical Analysis
There were good gains in the past in Crude oil price as it move above the $52.00 level against the US Dollar. Later, the price failed to remain above the $52.50-60 levels and started a downside move trading below $52.00.
The price declined heavily and moved below the $51.00 handle and the 100 hourly simple moving average. It is a bearish sign since the price even attempted a close below $50.00 once and traded as low as $49.97.
At the moment, the price is correcting higher and trading near the 23.6% Fib retracement level of the last decline from the $50.80 high to $49.97 low. On the upside, there are two important bearish trend lines forming with resistance at $50.40 on the hourly chart.
If the price moves higher, it won’t be easy for buyers to clear the $50.40-50.50 resistance. On the downside, a close below $50.00 might ignite further declines in the near term.Tags: Crude Oil, Crude Oil Price Technical Analysis, Oil Price, Oil Price Analysis, Oil Price Forecast, Oil Price Technical Analysis, US Dollar