Home Daily Analysis Charts / Trade Ideas Crude Oil Tests the $57 Resistance

Crude Oil Tests the $57 Resistance

31
0

During the Wednesday session, Crude Oil (NYMEX:CL) futures have been traded mostly bullish. Previous to the Energy Information Administration (EIA) Inventories release, the crude soared to $57.13 per barrel, the highest level of the week. The EIA reported a reduction on the inventories to -2.732 million barrels, more than the 1.89 million barrels forecasted by analysts.


source: tradingeconomics.com

The intraday picture

Despite the advance on oil demand, this was not enough to drive to CL to strike a new weekly high. The 30-minute chart shows the decline below the previous intraday low at $56.14. The fall developed with considerable volume, making us expect a correction with a target between $55.66 and $55.31.



Mid-term, we consider the possibility of a new upside movement. From the last CoT report, we observe the increase of 1.13% of long positions and the decline of 0.23% of short positions reported by the last CoT report.

LEAVE A REPLY

Please enter your comment!
Please enter your name here