Oil reverses yesterday's gain as the energy trade cools

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 ADP data released late yesterday showed:

• Oil +951K
  
• Gasoline +3682K
• Distillates +345K
• Cushing +345K
  

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October 07, 2021 at 01:50AM
Adam Button
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