WTI Market Analysis: Crude Inventory Draw Awaits

Last week oil (WTI) slipped to lows of 86 dollars a barrel, prices not seen since January. There was slightly strong bearish volatility as shown by the Bollinger Bands and Keltner Channels indicators on the 4 hour and 1 day charts. The motion of price falling beneath the lower lines indicated that strong sell volatility occured. The default RSI14 fell to oversold levels on the 4 hour and 1 day charts. Currently the relative strength index sits near neutral at a value of 44. It seems that some sell signals have formed recently on the 2 hour MACD, though without much bullish strong volatility and still in the normal trend (low volatility range). The 4 hour MACD may continue to show a bearish cross signal. Tomorrow the US will release the crude oil inventory count, Oklahoma crude count and other figures (rig count, total rig count). It looks like the expected forecast value is less than the previous weeks data (Forecast:0.073M - Previous:4.467M) thus they might be looking for the market to enter long buys (or hoping for this perhaps).
The monthly chart has the potential to be quite bearish as the 1 month MACD approaches a potential bearish signal cross down, this would indicate strong selling pressure in the oil market and could last a very long time, be cautious of this. It could be very possible for WTI to reach 50 dollars a barrel once again in the long term future. $WTI Crude Oil

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