- Consolidates yesterday’s sharp rally ahead of critical US data.
- Bullish bias still persists amid ongoing US-China trade dispute.
WTI (oil futures on NYMEX) consolidated near two-day tops of $ 69.36 all throughout the Asian trades, before breaking to the downside in Europe amid resurgent US dollar buying across the board.
The renewed strength seen around the greenback is mainly spurred by repositioning, as markets seek to adjust their trades heading into the highly-influential US labor market report.
Also, a bout of profit-taking cannot be ignored ahead of the US rigs count data due be published by Bakers and Hughes oilfields services company.
The black gold rallied a day before, following the weekly US crude supplies data from the Energy Information Administration (EIA) that showed that the stocks at the key Cushing storage hub in Oklahoma fell by 1.3 million barrels while markets ignored the unexpected build seen in the US crude inventories.
The drop in Cushing inventories was a driver for rising crude oil prices “amid signs that last week’s (overall) build in inventories won’t last very long,” Analysts at Australia and New Zealand (ANZ) banking group noted.
WTI Technical Levels
According to Jason Sen at DayTradeIdeas.com, “WTI Crude meets minor 1-week trend line resistance at 6900/6910 but above 6930 allows a further recovery to trend line resistance at 7000/7010. Shorts need stops above 7045. A break higher targets 7115. Failure to beat minor resistance at 6900/6910 targets 6870, 6830/20 & perhaps as far as 6780/70, before the range low at 6700/6690. Longs need stops below 6660.”
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