- 200-D EMA limits WTI’s recent upward trajectory.
- A surprise draw in API data, US-Iran tussle favor the upside.
- The EIA inventory report in the spotlight for fresh clues.
With the API data providing additional strength to WTI’s recent run-up mainly based on the US-Iran tension, the black gold now confronts the key MA resistance while taking the bids near $58.85 during early Wednesday.
The surprise slump in the weekly US oil stocks change report from the American Petroleum Institute (API) to -7.550 million barrels from -0.812 million barrels pleased the energy buyers during late-Tuesday.
The US-Iran geopolitical tensions continue to flare up as Iran considers latest sanctions from the US President Donald Trump closing the door for further talks. However, the Arab nation turned down the possibilities of war.
Traders may now await official stockpile data from the Energy Information Administration (EIA) in order to confirm the industry based reading.
Additionally, developments surrounding the geopolitical tussle between the US and Iran, together with the US-China trade tussle, will also grab market attention.
Technical Analysis
FXStreet Analysis, Ross J. Burland, cites 200-day Experiential Moving Average (200-D EMA) as the key upside resistance limiting the energy benchmark’s recent rally:
200-D EMA guards a run to the May highs of $59.67 in close proximity of the $60 psychological level. On the downside, bears can target back down to the 200 weekly EMA (last week's low) and the 61.8% Fibo around the 52 handle. Lower down, there are prospects for a correction to back towards the14th Jan 50.41 low and then the 26th November lows at 49.44.
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