Brent Oil – API inventory buildup weighs
Oil’s four –day winning streak came to a halt after US API reported a surprise inventory buildup of about 2 million barrels last week, which contradicted expectation of a one million barrel drawdown.
Prices may drop to $44.40, but reckon the falling wedge support may hold and fuel a rebound given the daily money flow index has breached the falling trend. The daily MACD has turned positive as well which adds to the possibility of a rebound from $44.450 area.
On the higher side, area around $45.68-45.74 is a strong hurdle which if breached would open doors for $46.22 levels (100-DMA).
Prices may drop to $44.40, but reckon the falling wedge support may hold and fuel a rebound given the daily money flow index has breached the falling trend. The daily MACD has turned positive as well which adds to the possibility of a rebound from $44.450 area.
On the higher side, area around $45.68-45.74 is a strong hurdle which if breached would open doors for $46.22 levels (100-DMA).
