ZuluTrade Blog
Image

Market View

Oil Traders focus on US Driving Summer Season

Friday, March 24, 2017 4:42 AM GMT

USOIL failed to break out the 54$-55$ area and forced in sharp downfall in 47$-48$. The market played bullish OPEC’s and some non-OPEC countries’ agreement to stabilize the production. However, OIL’s traders didn’t get any other catalyst to perform the next bullish move. Then news came up that OIL currently is continuing to extend a record oversupply during 2017 and traders found an opportunity to proceed on “hard” profit taking. On the other hand, investors are counting on the upcoming US driving the summer season where we can expect a rise in oil consumption, meaning, oversupply will fall while production will increase. The price is currently consolidating around 47$ on a critical support of 61.8%. Then we have a new support the rising trend line (white). Overall, the market bias remains bearish on daily timeframe. We need a valid breakout of 49.5$ level.  

Daily

 

Hourly

The range is around 2$. Therefore, if price violates upper (49.5$) or lower level (47$) then it will activate a potential of 2$. In the short term, if oil can break out the blue falling trend line, it may see 49.5$ level once again (playing the range until breaks).

 


Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.