- Crude oil price continued to move down after breaking the $44.30 support against the US Dollar.
- There are a few bearish trend lines with resistance at $43.80, $44.30 and $45.80 forming on the hourly chart.
- In the US, the API Weekly Crude Oil Stock (June 21, 2017) posted -2.72M compared to the last 2.75M.
Oil Price Technical Analysis
After failing to settle above the $47 level Crude oil price started a downside move against the US Dollar and moved below the $46 support area.
The downside move was strong, as the price cleared supports such as $45, $44.30 and even $44. A new monthly low was formed at $42.97 and it looks like declines are not over yet.
The price is currently attempting a recovery and trading near the 23.6% Fib retracement level of the last decline from the $45.27 high to $42.97 low.
However, there are many challenges above $44 for buyers and upsides won’t be easy.
Oil Price Hourly Chart
The next major resistance is near the 38.2% Fib retracement level of the last decline from the $45.27 high to $42.97 low at $43.85.
There are a few bearish trend lines with resistance at $43.80, $44.30 and $45.80 forming on the hourly chart. The first two bearish trend lines are near $43.80-44.00.
So, it clearly suggests that there is a strong resistance formed near $44.00. Above it, the previous support at $44.30 may now act as a resistance.
The $44.30-40 resistance also coincides with the 50% Fib retracement level of the last decline from the $45.27 high to $42.97 low. In short, selling towards $44.00-44.30 may be considered in the near term.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock (June 21, 2017) figure was released. The market was expecting the U.S. crude inventories to decline by around 0.25 million barrels at the end of last week.
However, the actual was -2.72M as per the American Petroleum Institute (API) compared to the last 2.75M.
Overall, if you are looking to sell Crude oil, then wait for a minor jump towards $44.00-44.30 to enter as long as the price is below the highlighted resistance trend lines.