WTI Outlook: OIL extends weakness as strong rise of crude inventories weighs
|US CRUDE OIL
WTI oil remains in red for the third straight day and pressures Wednesday’s spike low at $71.18.
Concerns over strong rise in weekly oil inventories (US crude stocks rose 5.77 million barrels vs forecasted draw of 1.56 million barrels) and US production holding at all-time high, weigh on oil prices, helped by weaker dollar.
Pullback from new multi-year recovery high at $72.89 penetrated thick 4-hr cloud (spanned between $71.37 and $69.95) could extend towards strong supports at $70.61 (Fibo 38.2% of $66.91/$72.89) and 70.37$ (rising 20SMA).
Break below 10SMA ($71.50) was initial bearish signal, with further easing supported by south-heading 14-d momentum and slow stochastic).
Res: 71.37; 71.50; 71.96; 72.24
Sup: 71.18; 70.98; 70.61; 70.37
Interested in OIL technicals? Check out the key levels
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