Crude oil price is seen consolidating the recent up move to two-week highs of $ 58.58, as the bulls take a breather ahead of the key Energy Information Administration (EIA) crude stocks data due later today.
July 31, 2019 | SQUARED DIRECT – With the trade and political headlines flashing mixed signals and the API data registering another draw, WTI surged during yesterday’s session and continue to take bids this morning.
While the US President Donald Trump doesn’t refrain from pouring cold water on expectations of a breakthrough from Shanghai’s trade talks, the Trump administration’s extension to Iran sanction waiver, as per the Washington Post, signals receding tension between the US and Iran and also adds downside pressure on the energy benchmark.
Positive to the price momentum initially arrived from the American Petroleum Institute’s US Crude inventory data. The API registered another decline in the US oil stockpile, worth of 6.024 million barrels versus previous -10.961 million barrels, for the week ended on July 26. Moving on, China’s activity index numbers and developments surrounding the US-China trade talks during the final day can entertain intra-day traders ahead of the EIA report.
Crude oil price technical forecast
Crude oil prices surged during yesterday’s session and continue to do so this morning as expected, reaching the $58.21 resistance level and breaking above it after an impressive run.
The price is currently still on the bids just below the $58.5 level with the momentum still in the bullish area. However, the overbought zone has been breached and traders could expect a slowdown to the bullish move but will continue focusing on the upside and the $59.28 resistance level will be on our watch.
Support: 58.21 / 57.81
Resistance: 58.8/ 59.28
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