For the past few trading sessions, we have observed that crude oil prices have not been able to break their previous high of $79.80. In fact, prices had formed a long-legged Doji candlestick near the high followed by a series of bearish candlesticks. Now, this structure suggests the possibility of a double top formation, and if that happens, then we could see a fall in oil prices till $70.
Price of MCX crude has given a breakdown of its crucial horizontal trend line support at 4,920-levels. Moreover, MCX crude oil prices are trading below the 50-day moving average, an indication that further selling pressure could be seen towards the 4,750-levels.
On the daily charts, we saw that Brent prices have taken a resistance near the upper band of its declining channel formation at $78.34 and prices are moving towards the lower band, which is placed at $70.
Price of MCX crude has given a breakdown of its crucial horizontal trend line support at 4,920-levels. Moreover, MCX crude oil prices are trading below the 50-day moving average, an indication that further selling pressure could be seen towards the 4,750-levels.
On the daily charts, we saw that Brent prices have taken a resistance near the upper band of its declining channel formation at $78.34 and prices are moving towards the lower band, which is placed at $70.
As far as recent oil inventories are concerned, crude oil inventories fell by 4.3mn barrels to 401.49mn barrels, while gasoline stocks rose by 1.8mn barrels. Distillate stockpiles, which includes diesel and heating oil, climbed by 3.1mn barrels, which marks the overall negative impact for crude oil prices.
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