Crude Oil

Oil Price To Recover Above $48.00 Vs US Dollar?

  • Crude oil price after trading as low as $46.98 against the US Dollar formed support and started a recovery.
  • There are two bearish trend lines forming with resistance near $48.00 on the hourly chart.
  • Recently in the US, the API Weekly Crude Oil Stock (week ending 11th August 2017) was released by the American Petroleum Institute.
  • According to the report, there was a draw of 9.200M barrels in United States crude oil inventories.

Oil Price Technical Analysis

This past week, there were mostly declines in oil price as it moved below the $50 and $48 support levels against the US Dollar. The price even traded a few points below the $47 level.

A low was formed at $46.98 from where a recovery wave was initiated. The price has moved above the 23.6% Fib retracement level of the last decline from the $49.10 high to $46.98 low.

However, the price faces a lot of hurdles on the upside near $48.00.

Oil Price Hourly Chart

Oil Price Technical Analysis

At the moment, the price is struggling to break the 38.2% Fib retracement level of the last decline from the $49.10 high to $46.98 low.

On the upside, there are two bearish trend lines forming with resistance near $48.00 on the hourly chart.

Having said that, the current price action is positive, which might lift oil towards the $48 handle. If buyers gain momentum, there is even a chance of it breaking $48 after a minor dip or correction to complete a three wave pattern.

API Weekly Crude Oil Stock

Recently in the US, the API Weekly Crude Oil Stock (week ending 11th August 2017) was released by the American Petroleum Institute. The market was expecting a draw of around 3.5 million barrels in United States crude oil inventories.

However, as per the report, there was a draw of 9.200M barrels in United States crude oil inventories. This was also on the higher side compared with the last draw of 7.839 million barrels in United States crude oil inventories.

Furthermore, the Gasoline inventories were up by more than 300,000 barrels, whereas the market was expecting inventories for the fuel to decline by 1.5 million barrels for the week ending August 11.

Overall, there are possibilities of oil prices recovering further above the $48.00 resistance in the near term.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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