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Crude Oil Dips After EIA Inventory Report

By Ravinder KumarCommoditiesJan 10, 2019 16:10
in.investing.com/analysis/crude-oil-dips-after-eia-inventory-report-200207032
Crude Oil Dips After EIA Inventory Report
By Ravinder Kumar   |  Jan 10, 2019 16:10
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In reference to my previous article Crude has achieved the level of 3625 and further, it may rally towards 3867 in coming to few sessions and could take support near 3360.

Yesterday Crude prices erased the gains and fell by 1% on bearish EIA Crude oil inventory report, although the sentiments remain positive in global markets for crude prices. WTI Crude oil was at $ 51.73 down by 1.20% & Brent trading at $ 60.77 down by 1.09% as of 13:15 IST. Both benchmarks had slipped on bearish EIA report. The bilateral talks lasted long because both sides were looking for some serious results. There are sentiments that US-China trade dispute talks were going well, which ignite hopes in the market.

EIA CRUDE OIL INVENTORY ANALYSIS

EIA reported crude oil inventory draw of 1.68 million barrels for the week compared to the expectation of 2.4 million barrels draw, while gasoline stockpiles rose by 8.1 million barrels compared to 3.3 million barrels. Late night API reported crude oil inventory draw of 6.127 million barrels for the week compared to the expectation of 3.3 million barrels draw. EIA also said that US production reported flat at 11.7 million barrels per day.

Global growth concern

According to the reports from World Bank global economic growth, outlook revised lower to 2.9% from a prior outlook of 3%, rising downside risks to the outlook. The World Bank said that “International trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures”. As World Bank downgraded its forecast of global economic growth, develop the fear in mind of the investor.

Technical levels to consider

MCX Crude Chart
MCX Crude Chart

Based on daily charts, prices are trading above 23.6 retracement level $50.51; which now act as immediate support for the counter. Price kissed the 50-day moving average $51.86, if sustain above these levels then may take the counter towards 38.2% retracement $55.55. On MCX Crude may find support near 3625 & resistance at 3749; 50-day moving average. Break above 3749 levels could take the rally towards 4th Dec high 3867 & ultimately towards 38.2 retracement level (4015).

WTI Crude Chart
WTI Crude Chart

Crude Oil Dips After EIA Inventory Report
 
Crude Oil Dips After EIA Inventory Report

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Vikram Pandit
Vikram Pandit Jan 13, 2019 16:19
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sir can crude continue its upward trend on monday by taking support of 3620 ??
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Hrushikesh SK
Hrushikesh SK Jan 12, 2019 20:35
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Sir, Can you please guide me to find out MCX-Crude Oil's monthly. weekly and daily Trend?
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Ravinder Kumar
Ravinder Kumar Jan 12, 2019 20:35
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follow my blog for weekly daily and monthly view
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TIME PASS
TIME PASS Jan 10, 2019 22:09
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what's when you put any news it's effects always opposite why
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Deepak Bhalla
Deepak Bhalla Jan 10, 2019 22:09
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3625 bola tha wo Target aa gya
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Deepak Bhalla
Deepak Bhalla Jan 10, 2019 22:09
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ab 3749 ki baari hai
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Ravinder Kumar
Ravinder Kumar Jan 10, 2019 22:09
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Kindly read the technical level section carefully & keep your eye on mentioned levels
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Ravinder Kumar
Ravinder Kumar Jan 10, 2019 22:09
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Deepak Bhalla Thanks Deepak Bhalla ji for paying attention to my levels carefully. Kindly let me know what else you want me to include in articles.
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Ravinder Kumar
Ravinder Kumar Jan 10, 2019 22:09
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Deepak Bhalla  As mentioned 3749 is achieved, now it can move further towards 3820-3867
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Disclaimer: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.\\r\\nFor more updates follow my blog - https://daytradeidea.blogspot.com
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