Today during the early Asian session, WTI crude oil prices started falling despite the Energy Information Administration (EIA) announcing a decrease in the US crude output data. US crude oil dropped 0.7% to trade around $56.96.
In the week ending June 28, the EIA reported a drop in crude oil inventories by 1.1 million barrels following expectations of a draw of about 2.96 million barrels. The dataset surely doesn’t look quite fit for the buyers in a week where the OPEC and non-OPEC members have already decided about extending a supply cut.
On the smaller timeframes, oil has already completed 38.2% retracement at 57.60 since then it’s heading lower. Crude oil continues to face support around 56.00 trading level. The bullish breakout of 57.60 can extend bullish rally up to 58.12, whereas the bearish breakout of 56.00 can lead oil prices towards 55.50.
Key Trading Level: 57.32
WTI Crude Oil – Trade Plan
The idea is to stay bearish below 57.35 and bullish above 56 as WTI crude oil may trade choppy until the breakout occurs.