WTI Crude Oil: general review
Current trend
During today's trading session, WTI Crude Oil price is under pressure, quotes went down to 52.70. The catalysts for the current market situation are expecting oil reserves growth in USA, and also global supply redistribution — despite all attempts by OPEC countries and some other market participants outside the cartel to decrease oil extraction.
China's customs report data showed that demand for carbohydrates is still high in this country. On February, crude oil import set a new record. Daily demand by Chinese consumers is 8.286 million barrels, which is by 3.5% higher than in the last year.
However, this data didn't cause further growth, as American Petroleum Institute report was published yesterday at the end of the day. From this report it is clearly seen that last week, the oil reserves grew by 11.6 million barrels, which is five times higher than expected.
Energy Information Administration's weekly US crude oil reserves data will be released today. According to the forecasts, the reserves will grow by 1.660 million barrels. Judging by Tuesday's data, the indicator can exceed the expectations significantly. In this case, USCrude price is going to decrease.
Support and resistance
On the daily chart of the instrument, we can see strong resistance level of 52.70. The MACD histogram is near zero line and its volume is decreasing, Stochastic is pointing downwards, which gives a buy signal.
Resistance levels: 54.50, 55.70, 57.50.
Support levels: 52.70, 51.30, 50.00.
Trading tips
Short positions could be opened at current level with take-profits at 51.30 and Stop Loss order at 53.20.
Buy positions may be opened after price consolidates above 54.50 with targets at 55.70 and stop-loss at 54.00.
Implementation time: 1-2 days.