WTI Crude Oil heading higher even though oil inventories came in worse than expected.

WTI crude thriving even though oil inventories came in at worse than expected. The commodity hit a new higher earlier of $84.16 but has now retraced and traded at $83.44 a barrel. Today’s close will be important ahead of the US CPI data, which is expected tomorrow. A close above April’s peak of $83.41, naturally would indicate that the bullish trend is not showing signs of weakness. Creating room for more upside. But will the CPI data dampen the recent run? There is plenty of support below for oil, with levels ranging along the green trendline. It has been a pretty sharp rise, hence, we may see some pullbacks regardless. Especially after setting a new high, though this is not guaranteed. A close above $83.41 would create an opportunity for a move higher towards $85-$86 a barrel (short-term). On the other hand, a close below would suggest resistance is overpowering a pullback towards the supportive trendline could occur once again ($80.74 – trendline support). Looking at the technical indicators, MACD is starting to falter as the volume has contracted to almost a neutral stance and the RSI reads 70. The RSI suggest that this market is slightly overbought, another indicator of a possible breather ahead of tomorrow.