- After a downside move towards $46.50 Crude oil price found support against the US Dollar.
- The price recently broke a bearish trend line at $47.65 on the hourly chart, opening the doors for more gains.
- In the US, the API Weekly Crude Oil Stock posted -4.432M, less than the last -8.67M.
Oil Price Technical Analysis
There was a steady downtrend in Crude oil price, as it moved below $50 against the US Dollar this past week.
The price even broke the $48 support area and traded towards the $46.60-50 area where it found support. A consolidation phase started, and later the price moved above the 23.6% Fib retracement level of the last decline from the $48.97 high to $46.56 low.
During the upside move, the price was able to break a bearish trend line at $47.65 on the hourly chart, opening the doors for more gains.
Oil Price Hourly Chart
An intraday high was formed at $48.25 where sellers appeared and protected further gains. At the moment, the price is correcting lower, and trading below the 23.6% fib retracement level of the last wave from the $46.71 low to $48.25 high.
There is a chance of a push towards the $47.65-70 support area, which coincides with the 38.2% fib retracement level of the last wave from the $46.71 low to $48.25 high.
Buying dips remains a good option considering the recent break above $47.50 and bearish trend line.
On the upside, a break above $48.25 could ignite further gains above the $48.40 level.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock figure was released. The market was expecting the U.S. crude inventories to decline by around 1.50 million barrels at the end of last week.
However, the actual was-4.432M as per the American Petroleum Institute (API). The price was pressured after the release, but the $47.60 remained intact.
Overall, it looks like there can be a slight decline in crude oil price towards the $47.60-50 support, but it may gain bids for another upside ride above $48.25 in the near term.