Crude Oil Price Bounced Back Sharply Vs US Dollar
- - Crude oil price surged higher after a sharp dip towards the $67.50 level against the US Dollar.
- - There is a major ascending channel forming with support at $68.30 on the hourly chart.
- - Recently in the US, the API Weekly Crude Oil Stock figure for the week ending May 04, 2018 was released.
- - As per the report, there was a decline in the crude oil inventories by 1.850 million barrels.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock figure for the week ending May 04, 2018 was released. The market was positioned for a minor rise in the crude oil inventories by roughly 1 million barrels.
However, the actual result was better as there was no rise in inventories, instead, there was a decline in the crude oil inventories by 1.850 million barrels. Looking at the gasoline stockpiles, there was a drop of around 2.1 million barrels, and inventories of distillates declined 6.7 million barrels.
There was a sharp bounce noted in crude oil price from the $68.00 support and the price moved back above the $70.00 level.
Oil Price Technical Analysis
There was a sharp downside move in crude oil price recently from the $70.70 swing high against the US Dollar. The price declined heavily and traded below the $70.00, $69.00 and $68.00 levels. It traded close to the $67.50 level before buyers appeared.
A low was formed at $67.55, and the price bounced back sharply above the 100 hourly simple moving average. It successfully broke the 76.4% Fib retracement level of the last decline from the $70.72 high to $67.55 low.
This means the price could continue to move higher and it may soon break the $70.72 high. Above the mentioned level, the price may even test the 1.236 Fib extension of the last decline from the $70.72 high to $67.55 low.
At the moment, it seems like there is a major ascending channel forming with support at $68.30 on the hourly chart. As long as the price is following the channel and the 100 hourly SMA, it remains supported for more gains above the $70.50 level.
Originally published at ForexGator.com.