WTI below rising support line following API and Venezuela headlines

WTI slid below the rising support line following the American Petroleum Institute larger than expected build and headlines surrounding Venezuela.
WTI is currently trading at $63.41, trading in a tight early Asina rage of between $63.32 and $63.44.

Ross J Burland FXStreet

WTI had caught a bid overnight, but has been sluggish in conviction and has subsequently lost its footing following the American Petroleum Institute reporting late on Tuesday that U.S. crude supplies rose by 6.8 million barrels for the week ended April 26, according to sources.

There was a stockpile fall of 1.1 million barrels for gasoline
Distillate stockpiles fell by 2.1 million barrels.

Traders will now await the inventory data from the Energy Information Administration will be released later today in the U.S. session which is expected to show crude supplies climbed by 1.4 million barrels last week, according to a survey of analysts conducted by S&P Global Platts.

WT levels

WTI is back below the rising support and on a subsequent follow through to the downside, the next stop would target the 200-D SMA and 50-D SMA converging just below 60.80. However, should bulls commit to the black gold sending it back within the rising wedge and above 64.80, then the case for a test of 69.50 and the 70 psychological level remains on the cards with price now back above the 61.8% Fibo of Oct-Dec 2018 range at 63.70.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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