WTI In Rotation Near $55.00 - Forex News by Strategia Forex
WTI

Friday brought a considerable sell-off in October WTI crude oil futures. Prices fell by more than $1.50 per barrel as the bears took control of the last trading day in August. Today’s holiday-shortened session hasn’t been nearly as dramatic amid low volumes and modest participation.

For the time being, $55.00 continues to be a monster in the WTI market. However, there may be a directional move on the horizon. With the peak demand of summer in the Northern Hemisphere dwindling, a trend of growing supply is very likely to develop in the near future. If WTI can’t manage a bullish run toward $60.00 this week, prices will be in a position to fall from current levels by mid-September.

October WTI Crude Oil: Technical Outlook

Traded volumes are light today, just under 200,000 for the session. With the early close a little over an hour away, crude oil has a good shot of settling between $54.50 and $55.00.

October WTI Crude Oil Futures (CL), Daily Chart
October WTI Crude Oil Futures (CL), Daily Chart

Overview: At this juncture, October WTI crude is trading in a noncommittal technical zone. Prices continue to reside in the area of $55.00, between the Bollinger MP and Daily SMA. This is a strong signal of market compression and suggests that a move is setting up for the near future. 

Once again, inventories are going to play a huge role in this week’s oil trade. Last Tuesday and Wednesday brought extremely negative EIA and API figures. If this trend continues, crude oil will be primed to hold the line above $55.00 at least until the weekly close.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of