CRUDE OIL BEARISH AFTER US INVENTORY SPIKE
Crude Oil is currently trading at 64.61-lower by 3.14% from the last closing. In the week ended 10th August, the crude oil declined 1.3%. Data reporting rise in U.S. crude inventories and weaker global growth outlook weighed on Crude oil prices on Wednesday.US crude oil prices declined to 8-week low on Wednesday.
According to the U.S. Energy Information Administration weekly report, crude oil inventories rose by 6.8 million barrels in the week ended August 10. Analysts had expected a decline of 2.4 million barrels. The American Petroleum Institute reported on late Tuesday a supply-increase of 3.7 million barrels. According to market sources, Chinese oil importers are not buying U.S. crude oil as they fear Beijing’s decision to exclude the commodity from its tariff list in a trade dispute between the world’s biggest economies may only be temporary.
On the technical front, the RSI is currently at 32.13% and suggests that the market can move in the downward direction. The %K has crossed the % D from above to the downside at 30.66%, and this suggests that the market may head downwards. The current price is below MA5. So, overall the market setup seems to be negative.
Trade Suggestion-Limit Sell At: 66.70, Take Profit At: 66.00 Stop Loss At: 67.05