U.S Crude Oil run upwards has began to meet with stiff resistance. Heavy selling took place yesterday and U.S Crude Oil may continue to see speculative selling in the short term.
Sentiment Shift Appears Underway
U.S Crude Oil appears to have a shift in sentiment taking place, which has seen its value slip and the 56.00 U.S Dollars a barrel juncture become a focus.Selling pressure became strong yesterday, and this occurred even as U.S Crude Oil Inventory reports showed a significant amount of less supply than anticipated.
Consistent Rise in Value Under Question
U.S Crude Oil experienced a consistent rise in value the past couple of months, but resistance certainly came into play around 59.00 U.S Dollars a barrel and did not relent.After showing signs of potentially breaking its consolidation, Crude Oil is battling against what has proven to be a persistent range for the commodity.
Support Levels Could be Tested
Speculators may continue to test support levels as they emerge based on the belief Crude Oil’s value can erode further.
Traders may be tempted to look for support levels between 54.00 and 55.00 U.S Dollars a barrel in the near term.In the short term, we believe Crude Oil may be negative. In the mid-term and long-term we are unbiased.