FxWirePro: US Oil trades weak on high inventory buildup, good to sell on rallies

• US oil has declined almost more than 4% in the past three trading session. WTI crude oil prices declined almost more than 2% yesterday on account of weak crude oil inventory data. The commodity hits low of $63.70 and shown a minor jump. It is currently trading around $64.34.
   
• US Energy Information Administration (EIA) shows that US crude inventory rose by 1.6 million bbls compared to forecast of 0.5 million bbls rise.
   
• On the lower side, near term major support is around $63.70 and any break below will drag the pair down till $63.29/$63. Short term bullish invalidation only below $62.50.
   
• The near term intraday resistance is around $65 and any break above will take the commodity till $66/$66.40. Bullish continuation only above $66.50.

It is good to sell on rallies around $64.60-70 with SL around $65.10 for the TP of $63.70/$63.25.