Short oil for the week, target 63.18 due to assumed crude build.
I typically look at 10:00 EST for weekly direction as that is when the genscape crude inventories estimate comes out. That point is the green arrow and the market took a tumble after that, so I assume there will be a large crude draw, seeing as genscape is much more reliable than API data.
Looking at a slightly lower low to confirm bear move tomorrow, around 54.8... then 53.18 as that is the next major support zone. If 54.8 breaks then there will also be a double top that would imply a similar measured move downwards (the rectangles) and that would imply 53.18 as well.
Could also look for a pullback retest of 65 area tomorrow after printing lower.
Looking at a slightly lower low to confirm bear move tomorrow, around 54.8... then 53.18 as that is the next major support zone. If 54.8 breaks then there will also be a double top that would imply a similar measured move downwards (the rectangles) and that would imply 53.18 as well.
Could also look for a pullback retest of 65 area tomorrow after printing lower.
Comment:
Probably looking at a decent pullback US time.
Comment:
Still looking at 63.17. 1$ drawdown from the initial support after API estimate of 3 million crude build. Wouldn't be too unreasonable to see before some pullback again tomorrow afternoon.
Comment:
Might get stopped out soon, hoping the move is just waiting for the fed news today to die down.