On a weaker-than-expected drop in weekly API stockpile, WTI falls back from a one-week peak.
Buyers are supported by a bullish MACD and prolonged trading above the 200-SMA, allowing them to overcome the monthly horizontal hurdle.
Intraday sellers are drawn to a 12-day-old support zone, but further loss faces a difficult path to the south.
WTI is down 0.17 percent intraday to $74.58 in early Asian session trading on Wednesday. As a result, the oil benchmark pulls back from a one-week high set the day before, owing to a moderate inventory drop, according to industry reports.
The American Petroleum Institute (API) announces -4.079 million barrels of crude oil inventories for the week ending July 09, down from -7.983 million the week before.
Bulls were able to take a respite from a two-week-long horizontal range around $75.00-75.20 thanks to a weaker than expected draw in stocks.
Even so, until the quote continues above the $74.30-20 zone, which includes various levels set since June 28, the corrective dips are less damaging to the short-term rise.
If the oil sellers breach the $74.20 support level, the $74.00 threshold and the weekly bottom near $72.55 will be tested for more decline before the 200-SMA level of $71.62 is highlighted for the WTI bears.
It’s worth noting that the positive MACD can keep energy buyers hopeful if prices stay above the crucial SMA, which if broken will put pressure on the monthly low near $70.30.
Meanwhile, a break above $75.20 on the upside will send WTI bulls to last week’s multi-month high of $76.40. Any further gains, however, will be tested by the 2018 high of $76.80.
Bullish trend/n
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