Bear-trendline capped recovery again; US crude inventories in focus for fresh signals
WTI oil price eases on Tuesday, after attempts to extend Monday’s 2.15% advance repeatedly failed to clearly break above strong barriers at $56.19 (converged 200/30DMA’s) and $56.33 (bear-trendline off 15 July high at $60.96).
Near-term bulls were driven by optimistic expectations over US/China trade spat, but lacked momentum for break higher, as the price action remains limited by the falling trendline since 15 July.
Daily indicators are in mixed setup and do not provide clear signal, but rising negative momentum warns of further easing while the price remains below pivotal barriers at $56.19/33.
Increased downside risk can be expected on firm break below pivots at $54.81/67 (Fibo 38.2% of $50.53/$57.46 / 10DMA).
Lack of fresh news turns traders’ focus towards US Crude inventories reports (API report is due later today and EIA will release their report on Wednesday) for fresh direction signals.
Res: 56.19; 56.33; 56.62; 57.45
Sup: 55.26; 54.81; 54.68; 53.99