Crude oil buyers exhausted under 91.00 [Video]
|The US Oil rallied in the short term but the bullish momentum could be over soon as the rate stands below strong resistance levels. The price turned to the upside only because the US Crude Oil Inventories came in at -7.1M versus 0.3M expected. Today, the Canadian Retail Sales may report a 0.4% growth while the Core Retail Sales is expected to register a 0.9% growth. From the technical point of view, the price action developed a major Falling Wedge pattern but this reversal formation is far from being confirmed.
As long as it stays under the downtrend line, the bias remains bearish. The weekly pivot point of 91.38, 91.00 psychological level, and 90.54 represent immediate upside obstacles. Registering only false breakouts above these levels may signal a new sell-off. Also, testing and retesting the downtrend line and the 92.92 - 93.51 resistance area may announce a bearish momentum. Only a valid breakout through the downtrend line and above 94.00 could activate an upside reversal.
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