Crude Oil Price Forecast: Bulls Have Reason To Cheer The EIA...| MENAFN.COM

Wednesday, 01 February 2023 07:02 GMT

Crude Oil Price Forecast: Bulls Have Reason To Cheer The EIA Report


(MENAFN- DailyFX) Key Highlights:

Crude Oil Technical Strategy: watching price attempt on $48, break > could signal trend shift Saudi Exports to US fell to lowest level since 2010, showing Riyadh making good on promises WTI breaks above $47/bbl on 4.73m decline in Crude inventories : Decline in long positions provides contrarian signal to look for upside To be fair the trend has not changed in Crude Oil. We continue to trade in a falling bearish channel making lower highs and lower lows. However, it's worth trying to connect the dots when positive developments arise to see if they can find momentum to act as a catalyst to a Bullish reversal.

On Wednesday, after the EIA released the data that Crude Inventories declined by 4.73m barrels and that Saudi was delivering less crude, holding true to their comittment may act as a force for higher prices. Of course, as we continue to see in Friday's Baker Hughes data, UUS production continues to push higher and acts as a road block for a significant price recovery. However, as we see increased gasoline demand (+2.1% YoY), a weaker and an overall supportive report from the EIA, it's worth it to keep an eye on the charts to see if a breakout could be in the works.

As the calendar rolls to the 2nd Half of 2017,

There are a handful of technical highlights to watch for that would act as catalysts for a Bullish recovery if the price exceeds. First, the opening range high for the 2nd half of 2017 (first two weeks of July) sits $47.29, Second, the combination of the daily Ichimoku Cloud and Bearish price channel (downward sloping red) align near $48.20-$47.50. Lastly, the 61.8% Fibonacci Retracement of the May to June range rests at $48.20. A break above the zone $47.29-$48.20 on a daily closing basis should be watched to combine with a desperately awaited Oil recovery.

While the dots may be in place to be connected, it's worth noting that without a price recovery, these points mentioned above (Saudi cutting back on US exports, increased Gasoline demand, 4.7m barrel inventory draw), remain unfulfilled anecdotes to a Bullish thesis. Lastly, we have seen a strong move off long-term support, which could also show that should a break above $48.20 develop, a base may be set. Maybe. A reversal lower from resistance would turn attention back to long-term support at $43.50/42 per barrel.

JoinTylerin histo discuss tradeable market developments.

After an encouraging EIA report, Oil turns focus to resistance ($47.29-$48.20/ barrel)

Chart Created by Tyler Yell, CMT

: Decline in long positions provides contrarian signal to look for upside

The sentiment highlight section is designed to help you see , and how client positioning can lead to trade ideas. If you have any questions on this indicator, you are welcome to reach out to the author of this article with questions at .

---

Written by Tyler Yell, CMT, Currency Analyst & Trading Instructor for DailyFX.com

To receive Tyler's analysis directly via email, please

Contact and discuss markets with Tyler on Twitter: @ForexYell


provides forex news and technical analysis on the trends that influence the global currency markets.

MENAFN1907201700760000ID1095639678


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.