Crude Oil Prices Turn Short Term Bullish

Crudeoil

06-06-2018 10:40AM

WTI crude oil prices edged higher on Tuesday brushing aside fears of a slight increase in global output subsequent a report that the U.S. government had asked major oil producers to increase oil output.

With the U.S. energy inventory data due today, Crude prices rebounded from session lows and the data is likely to confirm a draw in domestic crude supplies for the second straight week.

President Trump's tweeted in April, in which he criticised OPEC and claimed oil prices were "artificially high".

Crude oil Inventory forecast: Time Actual Forecast Previous
API Weekly Crude Oil Stock 2:00 AM -2.028M ----- 1.001M
Tonight
Crude Oil Inventories 8:00 PM ----- -1.824M -3.620M
EIA Weekly Distillates Stocks 8Pm 8:00 PM ----- 0.784M 0.634M
Gasoline Inventories 8:00 PM ----- 0.587M 0.534M

Technical chart


Crude

Technical outlook

I have made a short-term analysis of crude oil 4H chart which has formed “falling Wedge pattern “. In this pattern, the prices retest the resistance trend line at $66 currently.

Yesterday, I had mentioned in the report that RSI had oversold and triggered the level 33% which will pull back to 38% level. As per the pattern, it broke above the resistance line and turned short-term bullish towards $67.30-68.45 level. If it doesn’t break above, then the target would wait for selling to occur and continue towards downside target $62 level. However, traders wait in anticipation for June 22-OPEC meeting. OPEC may control inventory overflow which is likely to result from buying opportunity with bottoms.