Yesterday, WTI Crude Oil prices rose slightly, and today, during the Asian session, they continue to develop upward dynamics, updating local highs since July 14.
Moderate support for quotes on the eve was provided by data on the dynamics of oil and petroleum products reserves in the United States, but more confident growth was prevented by the released minutes of the US Federal Reserve, which for some time contributed to strengthening the positions of the US currency. The report of the US Department of Energy published yesterday reflected a decrease in oil reserves in the US for the week of July 23 by 4.089 million barrels after an increase of 2.108 million barrels over the previous period. Analysts expected the appearance of negative dynamics in reserves, but they expected only 2,928 million barrels. Gasoline stocks fell by 2.25 million barrels, and total oil production in the United States decreased by 200 thousand barrels per day to 11.2 million barrels per day.
Support and resistance levels
On the daily chart, the Bollinger bands show sideways dynamics within the forex forecast. The price range is slightly narrowing, reacting to the multidirectional nature of trading in recent weeks, but its width remains sufficient for the current price dynamics. The MACD indicator is growing, maintaining a weak buy signal (the histogram is located above the signal line). Stochastic, having reached the maximum values, tries to turn into a descending plane, signaling in favor of the development of a corrective decline in the ultra-short term.
Resistance levels: 73.00, 74.00, 75.00, 75.68
Support levels: 71.80, 71.00, 70.00, 69.07.
Trading Scenarios
Thus, the analysis and forecast of oil prices for July 30 - August 2, 2021, long positions can be opened after the breakdown of the level of 73.00 up with the goal of 75.00. Stop loss — 71.80. Implementation period: 2-3 days.
Short positions can be opened after a rebound from the level of 73.00 and a breakdown of the level of 71.80 with the goal of 70.00. Stop loss-73.00.