Crude futures continue to drag along our 1st tier uptrend line as investors debate trends and whether to leave $50/bbl in the past.

It seems investors could reach a decision soon with our 1st and 2nd tier uptrend and downtrend lines reaching their respective inflection points. We notice the same pattern of inflection in the EUR/USD, meaning the markets could get very volatile at the end of the week.

The data from the U. S. over the past 48 hours continues to send mixed signals regarding the state of the American economy. The confusion is reflected in crude futures with investors unsure whether to bank on a recovery.

However, it feels as if game changing news will come soon with the crude futures growing tired of consolidation. Weekly Crude Oil Inventories came in uncomfortably above expectations yesterday. In fact, the number was eye-popping and it's shocking the crude futures held up so well.

The startling rise in inventories makes us wary of overall consumer sentiment. On the other hand, the boost in supply could be due to the exponential increase in crude imports from Brazil and Russia.

Either way, the resilience in the futures further exemplifies the fact that investors are holding onto the belief that an economic recovery is underway. We expect crude futures to continue their strong positive correlation with U. S. equities for the time being.

Fundamentally, we maintain our resistances of $50.39/bbl, $51.03/bbl, $51.59/bbl, $52.02/bbl, and $52.49/bbl. To the downside, we hold our supports of $49.81/bbl, $49.28/bbl, $48.87/bbl, $48.37/bbl, and $47.79/bbl. Crude futures are presently trading at $50.29/bbl.

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