- WTI is trading 0.37% lower on Wednesday despite a draw in DoE's this afternoon.
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Crude oil inventories dropped 7.195mln vs expectations of - 0.710mln.
Spot WTI 1-hour chart
WTI has moved lower today despite some bullish fundamental news. This week both API and DoE inventory levels showed a decline. The latter was released this afternnon (Wednesday) and produced a much larger draw than was expected. Also according to a WSJ article, Saudi Arabia are also set to start another price war with Angola and Nigeria.
Despite all of this news, the price declined on the day and USD 40.00 per barrel seems to be a major barrier. If the price is to move lower from here it might find some support at USD 39 per barrel as the level has been used on multiple occasions in the past.
There is a wedge chart formation marked by the diagonal lines in blue. This is not the strongest formation as the bottom of the pattern has only be tested two times. If the price does break below the pattern it could be a good indication that we are in fact headed for lower levels.
The Relative Strength Index is languishing in the mid-zone. The MACD indicator is mixed as the histogram is in the red but the signal lines are above the mid-point. Overall the trend is still higher but if there is to be a break of the USD 39 level the retracement could become deeper.
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Additional levels
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