- – Crude oil price traded as high as $66.35 before starting a downside correction against the US Dollar.
- – There was a break below a major bullish trend line with support at $65.65 on the hourly chart.
- – Recently in the US, the API Weekly Crude Oil Stock report for the week ending March 23, 2018 was released.
- – According to the report, there was a rise in the crude oil inventories by 5.321 million barrels.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock report for the week ending March 23, 2018 was released. The market was positioned for a minor in the crude oil inventories by around 1.2 million barrels.
However, the actual result was below the market forecast as there was a rise in the crude oil inventories by 5.321 million barrels. Looking at the gasoline stockpiles there was a drop of 5.8 million barrels and inventories of distillates declined 2.2 million barrels.
There was a downside reaction in crude oil price and it moved below a key support area near $66.00 to start a downside correction.
Oil Price Technical Analysis
There were good gains this past week in crude oil price from the $63.00 swing low against the US Dollar. The price moved higher and broke many resistances such as $64.00, $65.00 and $66.00.
A high was formed near the $66.35 level before the price started a downside correction. The price moved down and broke the $66.00 support. Moreover, there was a break below a major bullish trend line with support at $65.65 on the hourly chart.
There was even a break below the $65.00 support and the 100 hourly simple moving average, which opened the doors for more losses. It traded as low as $64.49 and it remains at a risk of more declines towards the $64.00 level.
If the price corrects higher, an initial resistance is around the 38.2% Fib retracement level of the last decline from the $66.33 high to $64.49 low, which is also positioned near the 100 hourly SMA at $65.20. Above $65.20, the next resistance is at $65.50.
Also published on Medium.Tags: Crude Oil, Crude Oil Price, Oil Price, Oil Price Analysis, Oil Price Chart, Oil Price Technical Analysis, US Dollar