The fundamental narrative for oil remains unchange, absent an actual attack on supply lines the main concern for the market has been a question of demand. China the worlds biggest oil importer remains weighed by a sluggish recover which is fast turning into a potentially wider structural malaise even as other markets also has industrial activity slowing down. For today we have US Oil Inventories at 1430GMT and any repeat surprise of an increase could be the catalyst needed to clearly push us clearly back into the February/March consolidation area.
Resistance
- 85.15 – Dragon Fly Doji Low 4/22
- 84.27 – Intraday Range Play High
- 83.69 – Tuesday High
Support
- 82.27 – Tuesday Low
- 81.52 – Previous Consolidation Floorwe
- 80.85 – Daily Consolidation Low
Given our daily trend line breakout and oscillators crawling at oversold levels we continue to look for a follow through for the sell side. A push below Tuesday’s lows may be seen as a bearish entry point or long wick in the hourly chart. Note however the potential of US crude inventories to change the equation for bears if the numbers register a decline.
