Crude Oil peaks on OverSupply of Commercial Held Barrels?
Updated
Hello Traders.. Today Crude Oil went up and up and up and was beginning to resemble a small cap crypto.. this was until US Inventories data release showed an oversupply of 2/3 items. The number of barrels held by Commerical firms was forecasted to decrease by -1.2 million barrels in this weeks readings. Maybe this is why we saw crude hiking up and up (+1.15$) throughout Asian session and London session. The Actual reading, released 30 minutes prior to London close, showed an increase in the number of barrels held by commercial firms. 3.7M is the number. This increase is signnifcant , especially since the last 4 releases have been forecasted to show a decrease in the number of barrels held . With an oversupply, price naturally dropped , abiding to the laws of supply and demand. In our previous forecast we were anticipating a retest of 77.8 and consequential increase. We indeed observed this after price dropped dramatically. We saw 77.8 1Hr Zone hold firm. The Monthly, Weekly and Daily timeframes are still screaming buys and I'm still thinking there is some momentum bullish in the market. These are the prices that I like for scalping in the upcoming sessions. 78.80 1hr zone, 77.8 1hr zone. 77.30 is target for sells for upcmoming session while 79.25 is the target for longs in the upcoming sessions.
Note
We saw price hold 77.8 very firmly has as forecasted here! Price pulled back during London session and did a continuation of Bullishness here on this Thursday Note
79.25 is our bullish target for this daily candle, we may hit it on the next daily candle. We called out a 1$ Long from 77.8 1hr zone however which is more than enough. Cheers.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.