Crude Oil Price Approaching Crucial Support Vs US Dollar
- – Crude oil price traded as high as $72.83 before correcting lower against the US Dollar.
- – There is a crucial bullish trend line formed with support near $71.60 on the hourly chart.
- – Recently in the US, the API Weekly Crude Oil Stock figure for the week ending May 18, 2018 was released.
- – As per the report, there was a drop in the crude oil inventories by 1.300 million barrels.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock figure for the week ending May 18, 2018 was released. The market was positioned for a decline in the crude oil inventories by around 0.80 million barrels.
However, the actual result was positive as there was a drop in the crude oil inventories by 1.300 million barrels. Looking at the gasoline stockpiles, there was a rise in inventories by around 980,000 barrels, and inventories of distillates saw a draw of 1.3 million barrels.
There was a downside move in crude oil price, but it seems like the price is approaching a crucial support above $71.40-50.
Oil Price Technical Analysis
There were further gains in crude oil price above the $70.00 level against the US Dollar. The price traded above the $71.00 and $72.00 resistance levels. The upside move was positive as the price traded close to the $73.00 level and formed a high near $72.83.
A downside correction was initiated recently and the price moved below the 50% Fib retracement level of the last wave from the $71.27 low to $72.83 high. Sellers even managed to push the price below the $72.00 support area and the 100 hourly simple moving average.
At the moment, the price is trading just below the 61.8% Fib retracement level of the last wave from the $71.27 low to $72.83 high. On the downside, there is a crucial bullish trend line formed with support near $71.60 on the hourly chart.
Therefore, if the price corrects lower, it is likely to find support near the $71.60 and $71.50 levels. Should there be a downside break below $71.50, the price could correct further towards the $71.00 level.
Also published on Medium.
