Crude oil inventory draw down short of expectations, but fall stalls near support
The crude oil inventory draw down today fell short of expectations at -930K vs -3000K. That helped to send the crude oil futures price lower. The low reached $47.30, but it has found some modest buyers against the area. We currently trade at around $47.60
Technically, the contract is finding support from both the daily and hourly charts.
Looking at the daily chart, a trend line connecting the April and November 2016 lows cuts across at the $47.38 level today. The low today at $47.30 is close enough to that level. Also from the daily chart, the March lows at $47.01-$47.08 are other support levels that traders may lean against (with stops below).
Drilling down to the hourly chart, the low yesterday tested a lower trend line and held. Today, that trend line comes in at $47.17 area (currently). That too may have traders leaning on dips.
Are the buyers taking back control? Not really. The buying is more dip buyers against support between $47.01 and $47.38. If the buyers are to show they are taking more control, we will need to see some of the MAs on the hourly chart taken out (and stay above). Yesterday, the price moved above the 100 hour MA, but stalled against a topside trend line (see chart below). That 100 hour MA currently comes in at $48.79.
So sellers more in control, but reason for technical traders to lean against key support.
