There was a correction on the “black gold” market after the strong fall in March. We could watch the corrective movement during the last 2 weeks. WTI (#CL) futures held the 47.00-47.50 USD demand zone. Then the “bullish sentiments” appeared again. The quotes of #CL are near 51.50 USD level now. This mark can be also assumed a 61.8% correctional zone.

Source: tradingview.com

Sellers dominated on this market on Wednesday, April 5. The US holdings have risen, but the WTI oil has fallen in price. The US EIA report was released and here are the changes for this week:

– oil reserves: +1.566 million barrels;

– oil production: +52 thousand barrels (=9.199 million per day);

– distillates stocks: -0.536 million barrels;

– gasoline stocks: -0.618 million barrels.

At the same time, Baker Hughes exponentially increases the number of their drilling rigs. It has grown by almost 10% to 662 during the past month.

A trading idea for oil

Resistance levels: 51.50 USD

Support levels: 50.80 USD, 50.00 USD, 49.00 USD

Source: tradingview.com

I advise you to open “bearish” orders. It’s a good time for speculative and short-time transactions. Sell the asset, if its price goes through the 50.80 USD local support. The profit can be taken at 50.00 USD. I can forecast falling off the WTI oil quotes to 49.00-47.00 USD in the medium-term. So, it’s better to use a trailing stop while selling oil.