Crude Oil Update – Prices Tumble on API Build; EIA Report Next
May West Texas Intermediate Crude Oil futures are trading lower shortly before the regular session opening. Prices are expected to be under pressure on Wednesday due to another bearish report from the American Petroleum Institute late Tuesday. According to the API, U.S. crude oil inventories rose by 4.5 million barrels in the week ending March 17 to 533.6 million.
Today’s U.S. Energy Information Administration report is expected to show a 1.9 million barrel increase in inventory.
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Technical Analysis
The main trend is down according to the daily swing chart. Earlier today, sellers took out $47.71, signaling a resumption of the downtrend. This could create enough downside pressure to trigger a move into the November 14, 2016 main bottom at $45.78.
Forecast
Based on the current price at $47.56, the direction of the market today is likely to be determined by trader reaction to the downtrending angle at $48.14.
A sustained move under $48.14 will indicate the selling is getting stronger. This could create enough downside momentum to trigger a move into $45.78.
Overcoming $48.14 will signal the return of buyers with the next potential targets $48.50 and $49.14.