Talking Points:
- Crude Oil Prices Consolidate After Inventory Data
- Bullish Daily Breakouts May be Considered Above $53.67
- Looking for additional trade ideas for Crude Oil & Commodities? Read our 2017 forecast
Crude oil prices are consolidating for the third consecutive session this week, despite API reporting that U.S. crude oil inventories increased 2.93 million barrels last week. With little else on this week’s economic calendar, traders will look at US GDP figures as a potential catalyst to break out the commodity. US GDP figures are set to be released on Friday at an expected 2.2%.
Technically, crude oil prices continue to consolidate with a series of inside bars on the daily graph. Traders may use Friday’s candle as a reference, using the high and low as points of support and resistance. This means that daily bullish breakouts may occur above Friday’s high of $53.67. Alternatively, bearish daily breakouts may be considered under Friday’s low of $52.14.
Crude Oil Prices Daily Chart Consolidation
(Created Using IG Charts)
Intraday, crude oil prices are bouncing from support found at today’s S1 pivot at $52.75. If prices continue to rebound, the next test for crude will be found at $53.22. If prices move through the central pivot, this suggests that the commodity may trade higher to test values of intraday resistance. This includes the R1 and R2 pivot found at $53.63 and $54.09.
In the event of a bearish breakout, traders may next look for support at $52.35 and $51.88. A move beyond the S3 pivot at $51.88 should be seen as significant. In this scenario, crude oil prices would have broken out lower, concluding the previously mentioned consolidation pattern.
Crude Oil Price 30 Minute Chart with Pivots
(Created Using IG Charts)
--- Written by Walker, Analyst for DailyFX.com
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