Crude Oil dips below 56.00 on concerns of supply glut following reports that U.S. crude inventories rose at a faster pace than expected last week. Prices have continued to depreciate again overnight with candlestick well contained between the 20 SMA and 55 SMA. Hitting an intraday low of 55.70 a barrel, markets continue to remain concerned by the increasing stockpile. It is possible that we will see further softening in prices towards the 55.80 support level, and may even extend down towards 54.20.
Failing to maintain above 161.80% Fibonacci Extension level, Crude Oil dips below 56.00 with the probability of more bearishness. As the 20 SMA crossed beneath the 55 EMA, Crude Oil price has fell slightly more than 2% of its session high of 57.00. As Crude oil inventory capacity remains a significant concern, traders are taking different views and suggests the price still trading inside an up channel. Moreover, the price is trading above 55.80 level.