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LCrude: In an upward trajectory with bullish engulfing pattern

LCrude prices rallied on yesterday session with Saudi Arabia’s oil minister that pacified markets with reassuring comments on global oil demand and U.S data indicated that oil supply in the nation reached its highest level ever.

Yesterday the U.S Energy Information Administration (EIA) released its latest survey. The report was expected to show a decrease in LCrude stocks with estimates at 4.000 million barrels but the actual was worse than expected rising to 8.400 million barrels.

LCrude rallied more than 3.26% on yesterday session breaching above the 50-day moving average and closing near the high of the day, creating a bullish engulfing. The commodity is still in an unconfirmed recovery phase and is more than likely to move upward to a daily resistance. The stochastic is showing a slight bearish momentum.

Expecting upward move to 53.92 on a break above previous day high at 51.23 (scenario 1).

LCrude is a CFD written over Light Crude futures.