Crude Oil slid down on Monday, decreasing the price of WTI to less than 25.00 ahead of the Crude Oil stock data. The technical bias remains bearish since the crude oil price printed a lower low in the recent downside move on the daily chart.
As of this writing, the US Oil is being traded around $24.99. Mentioned below are three significant support levels that may prevent the price from decreasing further.
S1 = $23.4, the lower trendline arm
S2 = $22.9, the low of August 05, 2020
S3 = $22.0, the psychological number
The price might see an upside reversal after hitting the immediate support level as indicated below;
On the upside, the spot crude may come across a few hurdles listed below;
R1 = $24.80, the high of March 24, 2020
R2 = $25.00, the psychological number
R3 = $26.1, the upper trendline arm
The technical bias is expected to remain bearish as long as the $23.4, the lower trendline support zone remains intact.
US Crude Oil Stock Change News
The US energy information administration is slated to release the EIA stockpiles report in next 48 to 72 hours. According to the forecast of economists, the crude oil stock registered -2.67 Million reading as compared to the -1.632 Million reading during the week before. The US crude oil stock report tends to instigate price volatility causing a possible surge in the oil prices. Generally speaking, a higher than expected number in crude oil stock means strengthened supply and is therefore indicates bearish market for the crude oil and vice versa.
Considering the price behaviour of US Oil over the past few days, buying it around major support levels might be a wise decision in the short run.