WTI falls to $77.50
There's the risk of a bearish outside reversal on the oil chart today as crude falls $1.40 to $77.54.
The drop today is a mirror image of yesterday's gain and threatens yesterday's opening level of $77.59. A close below that would be a bearish engulfing candle. Even if that's the case, the key level on my chart is $76.97 (call it $77.00), which is the high for the year. You would expect to see a retest of that level in the process of a breakout.
At 10:30 am ET today we get the EIA weekly oil inventory data. The consensus is:
- Oil -418K
- Gasoline -279K
- Distillates -1007K
- Refinery utilization +0.6%
The API data released late yesterday showed:
- Oil +951K
- Gasoline +3682K
- Distillates +345K
- Cushing +345K
