CFD News: Oil sees demand after testing key support

July 13, 2022
by Joseph Jeffriess, Market Analyst

Welcome to Wednesday’s update, traders. Today our focus is on oil as price has started to move higher after testing and holding for now at key support.

Price continues to trade in a short to medium-term downtrend after sellers turned momentum back in June. Since that point, it’s been a series of LHs and LLs. Today’s price has shown defensive action from buyers after this morning’s lower gap failed to beat 94.90 area support and demand.

Could yesterday’s bar be seen as exhaustion? If buyers can hold this level of support, we will be looking for price to continue to push higher. Obviously, if we see a break, then it’s back to looking for new LLs maintaining the downtrend.

The MAs remain bearish, but the OBV has stopped putting in clear LLs despite yesterday’s strong move lower. Could support be hiding plenty of fresh demand from oil buyers? We will have to wait and see if buyers can hold the level again today.

Data to keep an eye out for today. 10:30 pm US CPI and core CPI. 12:30 am US crude oil inventory numbers.

Oil D1 Chart

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