Summary:

  • OPEC supports of oil prices, the API release will take place later today
  • WTI oil prices remain in a slight retreat, a key support placed at $55
  • The overbalance approach indicates major supports at: $56.1 and $54.1

In spite of the fact that the oil market seems to be overbought, the price has stayed at around its 2.5 year’s high for quite a while. Seeking reasons standing behind this scenario one needs to mention the weaker greenback and the solid report coming from the OPEC we analyzed on Monday. On top of that the American Petroleum Institute will issue its weekly report on a change in US oil stocks which is used as an omen before the governmental data published a day later. As for now the market consensus indicates that oil stocks have fallen 2.8 million barrels. Once the DoE release illustrates possibly a deeper draw, it could constitute another reason to be bullish on crude in the near term.

Monthly (MN1)

A monthly time frame reveals that oil prices uninterruptedly hover below their crucial resistance line at $63 being underpinned by a size of the largest corrective move in the ongoing long term downward trend. Nevertheless bulls ought to keep a close eye on $59 as it’s supported by a 38.2% retracement and therefore it could make a pause in a possible continuation of a bull market.

link do file download linkOil prices are heading for $63 where a crucial resistance is placed. Source: xStation5

Weekly (W1)

Oil prices have remained in a retreat over the course of the recent days while a pivotal support zone is located between $54 and $55. What’s more, a record level seen in RSI might be a warning signal for buyers thus this week’s close might be decisive for the future of the commodity.

link do file download linkA key support line for oil prices at a weekly interval is placed at $55. Source: xStation5

Daily (D1)

The price of crude keeps on falling after drawing a shooting star at a daily time frame, momentum hasn’t been impressive though. Having said that, one may predict that the current pullback could be completed close to subsequent support areas. The first one might be found at $56.1 – a broken upper boundary of an ascending channel. In turn once declines extend, a drop toward $54.1 might on the cards as well, notice that this level coincides with a support in a weekly time frame.

link do file download linkThe closest support zones might be found at $56.1 and $54.1 respectively. Source: xStation5