WTI Oil Outlook: Oil prices fell sharply after stronger than expected crude inventories build
|US CRUDE OIL
WTI oil fell over $1 and broke below psychological $70 support after EIA crude stocks report showed unexpected build of US crude inventories last week. Crude stocks rose 6.49 million barrels, compared to previous week's build of 5.89 million barrels and forecast for 1.6 million barrels build. Oil is down over 3% for the day and around 1.7% after report's release, with extension below $70 handle, penetrating daily cloud (spanned between $69.89 and $68.51), generating negative signal. Extension of bear-leg from $76.88 (03 Oct high) eyes targets at $69.44 (100SMA) and $69.19 (Fibo 61.8% of $64.43/$76.88) to confirm reversal. Daily close below broken $70 support would be bearish signal to support negative scenario.
Res: 70.00; 70.49; 71.51; 72.42
Sup: 69.44; 69.19; 68.51; 67.93
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