WTI crude oil price steadily traded lower in yesterday’s trading. The commodity peaked at $41.78 and slid to an intraday low of $40.71. By the end of the New York session close, WTI crude oil price had settled at $40.95. It was down from where it opened at $41.52. However, later today, the US crude oil inventories report could help the commodity find support on the charts.
Due to be released at 3;30 pm GMT, the Energy Information Administration is expected to report a build of 1 million barrels last week. This number represents the amount of oil held in storage by commercial firms. Typically, a higher number is seen to be bearish for crude oil price. This is because it would imply that demand for the commodity would be limited given the ample supply available. On the other hand, a lower-than-expected reading could be bullish for the commodity because it could mean that demand for oil may soon pick up.
On the 4-hour time frame, it can be seen that WTI crude oil price is testing support at the rising trendline (from connecting the lows of July 10, July 20, and July 27). Reversal candlesticks around its current price level, $40.90, could mean that WTI crude oil price may soon trade higher. Should this be the case, the commodity could soon trade up to $42.29 where it peaked on July 21.
On the other hand, a strong close below the 100 SMA around $40.60 may mean that WTI crude oil price could soon fall to $39.75 where it could test the 200 SMA for support.
