Crude Oil Price Bullish above $65.00 Vs US Dollar

Crude Oil Price Bullish above $65.00 Vs US Dollar

  • – Crude oil price made a nasty upside move recently and traded above $65.00 against the US Dollar.
  • – There is a crucial bullish trend line forming with support at $65.20 on the hourly chart.
  • – Yesterday in the US, the EIA Crude Oil stockpiles figure (Jan 19, 2017) was released by the Energy Information Administration.
  • – As per the agency, the EIA Crude Oil stockpiles were down -1.071M, which was less than the forecast of -1.6000M.

 

EIA Crude Oil Stockpiles Report

Yesterday in the US, the EIA Crude Oil stockpiles figure (Jan 19, 2017) was released by the Energy Information Administration. The market was looking for the EIA Crude Oil stockpiles to fall by roughly -1.6000M compared with the last decline of -6.861M.

 

However, the actual result was below the market expectation, as the EIA Crude Oil stockpiles were down -1.071M, which was less than the forecast of -1.6000M. On the positive side, this was the 10th week of a decline in stockpiles. According to the agency, the Crude stocks at the Cushing, Oklahoma declined by around 3.2000M barrels to 39.2 million. This is the lowest reading since January 2015.

 

The result seems to be positive, which means there can be more in oil price above the $65.00 level in the near term.

 

Oil Price Technical Analysis

There was a nasty upside move started in Crude oil price from the $63.00 swing low against the US Dollar. The price moved higher and broke a few important resistances such as $64.00 and $65.00 to settle above the 100 hourly simple moving average.

 

Oil Price Technical Analysis

 

The price traded as high as $66.19 recently and it is currently correcting lower. An initial support on the downside is around the 23.6% Fib retracement level of the last wave from the $64.40 low to $66.19 high at $65.77.

 

On the downside, there is a crucial bullish trend line forming with support at $65.20 on the hourly chart. The trend line support sits around the 50% Fib retracement level of the last wave from the $64.40 low to $66.19 high.

 

Therefore, any correction from the current levels is likely to find support near $65.50 or $65.10. Overall, more gains are likely above the $66.20 level in the near term.


Also published on Medium.

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