WTI OIL falls after crude surprise stocks build, but hopes of renewed attack at $70 target would be renewed on close above 10SMA
WTI oil hit session low at $67.10 and cracked Tuesday’s spike low support at $67.12, after EIA report showed unexpected build in crude stocks last week.
Inventories rose by 2.17 million barrels, strongly undershooting forecast for 1.6 million barrels draw, putting oil price under fresh pressure.
The second day in red and break below 10SMA tracked ascend in past two weeks, would be strong signal of reversal, which requires break and close below $66.58 (Fibo 38.2% of $61.80/$69.54 upleg for confirmation.
Fading fears about new sanctions against Iran also weigh on oil price, however, despite near-term bias turning into bearish mode, hopes of fresh attempts towards $70 target could stay alive if oil price manages to repeatedly close above 10SMA ($67.68).
Res: 68.00; 68.44; 69.00; 69.36
Sup: 67.10; 66.58; 65.86; 65.67