- Crude oil price after a minor decline back towards $42 against the US Dollar found support and recovered.
- There are two bullish trend lines formed with supports at $43.60 and $43.50 on the hourly chart.
- In the US, the API Weekly Crude Oil Stock (June 28, 2017) posted 0.85M compared to the last -2.72M.
Oil Price Technical Analysis
There was an extended decline in Crude oil price below $43 against the US Dollar. It traded close to the $42 handle where it found support and started an upside move.
The price formed a base near $42 and later moved above the $42.40 resistance to start a recovery.
It followed a nice bullish structure and recently traded close to the $44.50 level where it faced offers and currently correcting a few points lower.
Oil Price Hourly Chart
It has moved below the 23.6% Fib retracement level of the last wave from the $42.69 low to $44.52 high.
On the downside, there are two bullish trend lines formed with supports at $43.60 and $43.50 on the hourly chart.
The price recently tested the first trend line and the 50% Fib retracement level of the last wave from the $42.69 low to $44.52 high. The 50% Fib level held the downside move below $43.60.
It seems like the trend lines support above $43.50 is a good short-term buy zone. As long as the price is above $43.50, there is a chance of a bounce back in Crude oil prices.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock (June 28, 2017) figure was released. The market was expecting the U.S. crude inventories to increase by around 0.50 million barrels at the end of last week.
However, the actual was +0.85M as per the American Petroleum Institute (API) compared to the last -2.72M.
To sum up, the price is trading with a positive bias above $43.50 and may trade further higher. Below $43.50, the price might struggle and retest the $42 support zone in the near term. On the upside, an initial resistance is near $44.50, followed by $45.