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    MARKET ANALYSIS AND NEWS Crude weak after a weekly shooting star? Market News

    Crude Oil, Daily

    Dallas Fed moderate-hawk Kaplan sees oil supply balanced with demand by mid-2017 and thinks there could be under supply by 2018-2019, though he is of course talking the book of the oil weathy region of Texas. Wall street Journal reports today that banks are worried about the growing pile of debt taken on by European oil companies making little or no profits, and that means money to finance new drilling and other projects is drying up. Several oil companies said they expect their ability to tap credit lines to be diminished after loan reviews.

    While the Fed officials and banks view the markets from a longer term perspective we focus on near term opportunities that are created by market fluctuations. Three days ago the price of WTI crude fell below the rising regression channel it had been in since the mid-February this year. This happened after oil hit the upper Bollinger Bands in the weekly chart and created a bearish pin bar (a shooting star). This is a sign that institutions have been taking money off the table and suggests that we might see a correction in the price of crude. Crude oil is now oversold as per Stochastics (7, 3, 3) and near 23.6% Fibonacci level but could but could be a sell should it first rally higher from here.

    I am therefore looking for sell signals between $40.17 and $40.80 with Target 1 at $34.47 – $38.85 area and Target 2 at $34.00 – $35.90. Please, remember to apply the entry and risk management principles I’m teaching in the webinars. Join me to free webinars if you want to learn more.

     

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    Janne Muta

    Chief Market Analyst

    HotForex

    Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.


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