Market News & Analysis
WTI Crude Oil Intraday: Steady Uptrend
George Lam May 7, 2020 10:30 AM
Source: Trading Economics, U.S. Energy Information Administration
The U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories rose 4.59 million barrels in the week ended May 1, less than an increase of 8.67 million barrels expected. In fact, the growth in inventories has been dropping for a third straight week, as shown on the chart above, and the second time in a month that the increase was less than estimates.
It may be reasonable to see some profit taking in oil, given such a rally in a considerably short period of time. However, the retreat in WTI Crude Oil prices yesterday has not yet violated its current trend of rebound.
From a technical point of view, WTI Crude Futures (June contract) maintains its bullish run as shown on the 1-hour chart. Despite a modest pull-back, it remains trading within a rising channel drawn from April 28. In fact, yesterday's day-low was also near the 23.6% Fibonacci retracement level of the rally. Bullish investors might consider $22.55 as the nearest support, while a break above the nearest resistance at $26.05 would open a path to the next resistance at $28.20. In an alternative scenario, a break below $22.55 would trigger a deeper price correction to the next support at $20.00.
Source: TradingView, Gain Capital
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.