Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.
Inventory Build Puts the Kibash On Oil
Both the API and EIA Weekly Inventory Reports showed huge builds of 14 million barrels, which pummeled the price from $47.50 to $45.00 just since Tuesday evening-- after Oil already had pressed from its OCT 19 high at $51.93 beneath $50.00.
Oil is down nearly 14% during the last 10 trading sessions, and as such, is extremely oversold, and continues to exhibit positive momentum divergences during the most recent Inventory-induced portion of the plunge from $47.50 to $45.00, which remains a warning signal that a vicious rebound could emerge at just about any moment.
That said, however, purely from a techncial perspective, Oil needs to claw its way back above $45.60/80 resistance, which will place the price structure once again above its Feb-Nov up trendline.
Unless and until Oil reclaims its dominant support line, it will remain vulnerable to testing critical, pivotal September support lodged between $44.00 and $42.55.
