FxWirePro: US Oil trades well below $50, good to sell on rallies
Oil prices weakened further as data shows a rise in US inventory and record supplies in the rest of the world. US Oil made a high of $49.61 yesterday and declined sharply from the high. It is currently trading around $48…
Oil prices weakened further as data shows a rise in US inventory and record supplies in the rest of the world.
US Oil made a high of $49.61 yesterday and declined sharply from the high. It is currently trading around $48.57.US crude stocks rose 897000 barrels in the week to Apr 21st compared to expectations of a 1.7 million barrel.
Oil has broken minor trend line support at $48.60 (trend line joining $49.18 and $48.85) and decline till $47.03 (Mar 22nd 2017). The near term resistance is around $50.50 (38.2% retracement of $53.71 and $48.49) and any break above targets $50.99 (55- day EMA).
It is good to sell on rallies around $49-$49.10 with SL around $50.20 for the TP of $47.
