Oil prices saw an even bigger follow through sell-off Wednesday on a surprise jump in supply as the US. The Energy Information Administration (EIA) said oil companies added a surprising 7.3 million barrels of crude into stockpiles during the week ended April 26 in the US that coupled with weaker demand should see softer prices before cyclical US driving season kicks in. Note we are also seeing a peace dividend in oil prices though we actually need to see Hamas accepting Israel’s offer for things to last.
Resistance
- 86.74 – Intraday Low/High
- 85.76 – Wednesday High’
- 84.67 – Intraday Consolidation Floor
Support
- 83.18 – Wednesday Low
- 82.70 – Previous Range Resistance
- 81.54 – Range Play Floor
Oil prices are at a very interesting juncture as Brent Crude is at the Bullish Trendline from the December 2023 low, with not quite a maru bozu daily candle. Yesterday’s close has also pushed us into the range play area from the middle of February to mid-May. Given the chart that we have our preference will be to look for a clear push back into the previous range play with a break of yesterday’s lows as an entry. We will also be looking at shorting a technical correction to intraday resistances provided we have long wicks. Bulls are best advised to keep a tight stop and reverse at the break of yesterday’s low.
