WTI oil price edged lower on Wednesday after Tuesday’s action was directionless and ended in Doji candle, despite bigger than expected draw in crude oil stocks (5.48 million barrels vs 4.1 million barrels f/c) API report showed.
Fresh easing today comes on speculation that EIA crude inventories report, due later today, will show build in gasoline and gasoline supplies.
Near-term price action is holding between 20 / 10 SMA’s ($57.13 / $57.81 respectively) which mark initial support / resistance points.
Fresh bears are pressuring 20SMA support and sustained break lower to generate bearish signal for test of next significant supports at $56.75 (29 Nov higher low) and $56.41 (Fibo 61.8% of $54.80/$59.02).
Conversely, sustained lift above 10SMA would improve the sentiment.
Res: 57.55; 57.82; 58.31; 58.86
Sup: 57.13; 56.75; 56.41; 55.80