Crude Oil has tumbled after The U.S. government’s Energy Information Administration (EIA) said inventories rose by 14.4 million barrels for the week ended Oct. 28, versus analysts’ expectations for a build of 1 million barrels. It was the biggest ever rise in U.S. crude stocks in a week, overwriting a 2012 record.
So where are the downside technical targets, we have the important trading levels from Artac Advisory
SHORT-TERM (today 5 days out)
Downside Wednesday, breaking/opening below 46.52 signals 45.83 intraday, while a settlement below 46.52 indicates the targeted 44.35-52 region within 1-2 days, able to contain selling through the balance of the year and a meaningful downside continuation point over the same time horizon.
MID (2-3 wks) & LONG TERM (2-3 ms )
The 49.49 speed-line can absorb weekly buying pressures, below which midterm support at 44.35-52 remains a 2-3 week target able to absorb selling through the balance of the year. Holding above 44.52 should yield long-term resistance at 58.65 over the next several months (page 2), while a settlement below 44.35 indicates 39.57 within several weeks, 35.22 within 5-8 weeks where the broader complex can bottom out into next spring. Upside, a daily settlement above 49.49 neutralizes last week’s near-term sell signal, essentially allowing 55.20 within several weeks where Crude can top out through December. A daily settlement above 55.20 indicates 58.65 within several more weeks, longer-term resistance able to contain strength well into 2017 and a meaningful upside recovery point over the same time horizon.
