Market Spotlight: Trading The EIA Crude Inventories
Crude Sitting at Highs
The latest set of EIA crude oil inventories are due later today and given the impressive run of drawdowns the EIA has highlighted over the last month, traders are keen to see whether it will be more of the same. On the back of the prior week’s 7.6-million-barrel drawdown, the market is this week looking for a further -4.2 million barrel reading. With crude oil prices holding near highs, confirmation of a further drawdown could see crude prices breaking out to fresh, record highs. On other hand, a weak reading today could see a sharp correction lower in oil given the weakness in technical indicators at the last test of highs.
Technical Views
Crude oil prices are holding just below the 74.46 level, following the buying that kicked in as price retested the 69.53 level. While the focus is on further upside for now, given the negative turn in the MACD and bearish divergence on the RSI, there are risks of a downside move on any disappointment in today’s release. To the downside, 69.53 and 65.52 are the key levels to watch.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.