WTI Crude inventories due
The price of Oil remains in a sideways consolidation at present with resistance at 7000.00 and support at 6650.00. US Crude Oil inventories are expected to show a draw of -2.8M from a build last week of 3.8M when it is released later today. Resistance is coming in at 6922.88 on the daily chart with a tweezers pattern at that level, which can lead to a bearish move in the short term. Above this level 7000.00 comes into play followed by 7022.24 and 7100.00. A break above these levels can see a rapid move higher through the 7169.10 level to 7300.00 with the recent high at 7400.00.
Support comes in at 6763.00 with a loss of this area signalling a retest of the rising blue trend line at 6665.00 on the cards. A break of this area would be confirmed by a break and retest of 6650.70 and a subsequent move down to 6419.57. A move past the June low at 6340.00 would create a lower low and open the way for a test to 6200.00, 6000.00 and the 5800.00 low.
The precious metal has declined sharply since breaking down from its double top in May and is currently trading around 1215.00. The low reached was 1204.00 with plenty of support coming from the strong area around 1200.00. A dip under this area can see 1194.90 come into play followed by the 1180.00 long term support level. The falling blue trend line presents an interesting proposition for traders should price reach the area around 1170.00. This trend line features heavily on the chart and has impacted price on every occasion.
Resistance comes in at 1220.00 at present with 1236.20 an important area and Point of Control. A break above this point can see gold bulls attempt to accelerate any upward move. The previous point of control is then found at 1263.00 up to 1265.00 forming a narrow zone of resistance. Above this zone 1282.00 and 1300.00 come back into play.