WTI crude oil price is currently trading below its open price at $39.30, down from $39.45. Despite this, however, technicals suggest that we could soon see WTI crude oil price rally as setups suggest that there is bullish momentum in the market. Can the API inventories report help the commodity rally past its recent highs above $41.00?
Due later today at 8:30 pm GMT, the American Petroleum Institute will release its data on crude oil held in storage by commercial firms for the week ending on June 26. If the report shows that inventories rose from last week’s reading of 1.749 million barrels, WTI crude oil price could weaken. This is because it would imply that there is no urgency for firms to replenish their oil supplies. On the other hand, if the report shows that inventories fell, the commodity could trade higher.
On the 4-hour time frame, it can be seen that WTI crude oil price recently bounced off support at a rising trendline (from connecting the lows of May 22, May 28, June 15, and June 25). This suggests that the uptrend on the commodity is still very much intact.
It is also worth noting that WTI crude oil price looks to have formed a double bottom. When you enroll in our free forex trading course, you will learn that this chart pattern is characterized by a market bouncing off support twice. For the commodity, that support level was $37.40. As of this writing, WTI crude oil price is trading slightly above its neckline resistance. This could mean that there may be enough buyers in the market to push the commodity to its June 23 highs at $41.41.
On the other hand, a strong close below yesterday’s low at $37.37 may invalidate the double bottom chart pattern as well as support at the rising trendline. This could mean that there may still be sellers left in the market that could push WTI crude oil price to its June 15 lows at $34.40.