Equity and currency markets settled down on Tuesday as comments by Mario Draghi calling for Central Banks to “align polices on a shared diagnosis of the root causes of the challenges that affect us all” were interpreted as a call for more easing by the Central Banks. This resulted in a strong recovery in August Crude Oil off of Monday’s lows. The rally in Crude formed a bullish engulfing candle on the daily chart and could lead to a test of resistance at the 13 DMA at 48.35 and then the 21DMA at 48.88.
Traders were also expecting a bullish inventory report from the American Petroleum Institute (API). The API report didn’t disappoint as it showed inventories shrinking by 3.86 million barrels, more than the expected decline of 2.5 million barrels.
Inventory levels in Cushing, Oklahoma declined by 1.207 million barrels and gasoline inventories declined by 416,000 barrels. We get the EIA take on inventories on Wednesday morning at 9:30 AM CT. The last few EIA reports negated the API numbers.
- High 48.18
- Low 46.54
- Last 48.11
Daily Pivots for 6/29/16:
- R2 49.25
- R1 48.68
- PIVOT 47.61
- S1 47.04
- S2 45.97