FxWirePro: US Oil trades higher on declining inventory, good to buy on dips
Major resistance - $57.80 (61.8% retracement of $59.02 and $55.84). US oil has broken major resistance $57.80 yesterday and jumped till $58.16. The main reason for jump in oil price is oil production halt at North Sea an…
Major resistance - $57.80 (61.8% retracement of $59.02 and $55.84).
US oil has broken major resistance $57.80 yesterday and jumped till $58.16. The main reason for jump in oil price is oil production halt at North Sea and declining crude inventory. The commodity jumped almost $1.5 from the low. It is currently trading around $57.97.
US crude inventory came slightly better than expected yesterday. US crude stocks fell by 6.5 million compared to forecast of 3.6 million.
The number of rigs declined by 4 snapping a five – week streak of gains for the week of Dec 15 to 747 and up 237 YOY.
Technically, the pair broken 61.8% retracement of $59.02 and $55.84 at $57.81 and any break above will take the commodity to next level till $59.02. It should break above $59.02 for major trend reversal.
On the lower side, near term support is around $57 and any violation below will drag the commodity till $55.79/$55.
It is good to buy on dips around $57.40-45 with SL around $56.85 for the TP of $59.02.
