WTI Oil Outlook: bear - trendline capped recovery again; US crude inventories in focus for fresh signals

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil price eases on Tuesday, after attempts to extend Monday's 2.15% advance repeatedly failed to clearly break above strong barriers at $56.19 (converged 200/30DMA's) and $56.33 (bear-trendline off 15 July high at $60.96). Near-term bulls were driven by optimistic expectations over US/China trade spat, but lacked momentum for break higher, as the price action remains limited by the falling trendline since 15 July. Daily indicators are in mixed setup and do not provide clear signal, but rising negative momentum warns of further easing while the price remains below pivotal barriers at $56.19/33. Increased downside risk can be expected on firm break below pivots at $54.81/67 (Fibo 38.2% of $50.53/$57.46/10DMA). Lack of fresh news turns traders' focus towards US Crude inventories reports (API report is due later today and EIA will release their report on Wednesday) for fresh direction signals.

Res: 56.19; 56.33; 56.62; 57.45
Sup: 55.26; 54.81; 54.68; 53.99

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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