CRUDE OIL had a build of 2866K. Consensus was for a draw of 1500K. BEARISH (AND WAY OFF THE CONSENSUS!)
GASOLINE had a draw of 205K. Consensus was for a build of 650K. NEUTRAL TO BULLISH(AND OFF FROM THE CONSENSUS)
DISTILLATE had a build of 1661K. Consensus was for a build of 900K. BEARISH (AND OFF FROM THE CONSENSUS)
Looks like another mixed report as analysts are pretty much way off the mark again. The real surprise here is the CRUDE NUMBER. This is the first build in four weeks despite analysts expectations for another draw.
USO: after breaking through a recent range high it has had a strong run toward defense at 200 TANKS and could be time for some consolidation. The WEEKLY chart has little resistance until 50 TANKS at 53.
XLE: the XLE broke out above its 200 TANK defense last week and may do some retracing to test the 200 as offensive support. 21 TANKS are acting as trend line support and are sitting right below the 200 to essentially create 221 TANK support when combined with the 200. The WEEKLY chart could be heading to 50 TANKS at 54.68.
OIH: the OIH has now broken through the 200 TANKS for a break out above 105. Could retrace to the break out level for a test. The WEEKLY chart shows a strong defensive line at 50 TANKS, which the OIH came close to tapping at 113.
KOL: broke through 200 TANKS on the DAILY, has restested it and is now moving beyond it. Could now retest the breakout high at 23. The WEEKLY is now sitting on 50 TANKS at 24.70.
XNG: same as KOL on the DAILY yet on the WEEKLY is close to two strong lines of defense at 50 and 200 TANKS. Could retest the 21 TANKS on the DAILY if the recent break out high of 449.61 is broken.
There could be some retracement trade opportunities here but my charts for individual stocks are not giving me a signal either way. I very seldom trade oil and oil related stocks the day of the report unless my intraday charts are giving a clear signal one way or the other.
FOR A DISCUSSION OF “TANKS” SEE UNDERSTANDING STOCK MARKET MOVING AVERAGES…
FOR A DISCUSSION OF OIL ANALYST EXPECTATIONS PLEASE SEE “HELP WANTED…”
