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 sho…
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.
