WTI Crude Oil - Massive "Assault" Again !

The Energy Information Administration poured ice cold water on the budding hope that inventory levels in the world's largest oil consumer may be normalizing, by reporting a 3.3 million barrel build in commercial stockpiles for the week to 
June 2.
 
That happened a day after the API reported a draw of 4.62 million barrels, with analysts expecting the API to report a draw of 3.5 million barrels for last week - but even with expectations for another draw in inventories, prices failed to show any significant enthusiasm, jumping briefly before sagging down again on Tuesday. EIA's figures will likely strengthen the downward trend.

More news, Oil Prices Collapse As The EIA Reports Unexpected Inventory Build

Daily chart of West Texas Intermediate (WTI) Crude Oil.

The price broke the support zone and S-Trader Trend Tracker with relatively high volume (1,123,281) close to the amount of volume selldown on 25 May.

In the post dated on 26 May, it highlighted that the price trend is forming a series of Lower Low and Lower High. With the latest price action, the trend formation still intact.

Bear very much in control.

Is the price heading towards $39-$42 range ?
 
The next immediate support zone is between $43.76 and $45.51.

S-Trader Trend Tracker support levels (Daily chart)
Resistance1 = $52.68
Resistance2 = $50.07

S-Trader Trend Tracker support levels (Weekly chart)
Resistance = $53.85
Support      = $44.81

Note : S-Trader indicators/tools is not part of Metastock software package. It is our proprietary system/tools. If you have any further inquiries, please feel free to Contact Us.



Source : 
1) Metastock
2) www.oilprice.com