WTI OIL falls after stronger than expected US crude inventories build
WTI oil fell over $1 and hit one-week low at $62.20 after downbeat US supply data. US weekly crude inventories rose 3.01 million barrels, strongly overshooting forecast for 2.4 million barrels build.
Weaker than expected data put oil prices under increased pressure. Extension previous day’s strong fall penetrated daily cloud (cloud top marked significant support) and close in the cloud would generate further negative signal.
Bears now eye next pivotal support at $61.92 (Fibo 38.2% of $58.19/$64.22) break of which would confirm reversal and open way for deeper pullback, as strong bullish sentiment that was build in past two weeks is fading.
Broken 30SMA ($62.96) marks solid resistance and is expected to cap upticks.
Res: 62.62; 62.96; 63.41; 64.07
Sup: 62.09; 61.92; 61.20; 60.74