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.