Crude Gives Back Some Of Yesterday's Gains
FOREX.com | Sep 18, 2019 06:16
After yesterday’s breakout in Crude Oil, closing up near 14%, the market gave back some of those gains as bearish comments trickled out throughout the day. Earlier in the day, Saudi sources reported that Saudi oil output will return to normal levels quicker than initially assumed. Later towards the close, a Aramco source said that Abqaiq processing plants be at normal capacity by the end of September. Light Crude Oil Futures closed down roughly 5.5% today as price briefly touched support at the highs from September 10th, trading as low as 58.50. However, trading at a prior high does mean that the gap in Crude Oil has been filled. In order to fill the gap, price must reach the prior price from before the gap at 54.58, which in this case is Fridays close.
The 58.50 low in Crude Oil also marketed support at the 38.2% retracement level from the low on August 7th to yesterdays highs.
Support below arrives at the previously mentioned days lows and 38.2% retracement at 58.50. Next support is near 57, which is the 50% retracement and horizontal support. Below that support is 56.20, which is the 50 Day Moving Average and Trendline Support (see Daily chart above). Horizontal resistance comes in at 61.50, Next resistance is yesterday’s highs at 63.38.
Tomorrows price action in Crude Oil can still be volatile as more comments are released regarding the attacks. On a separate note, the much anticipated FOMC rate meeting is also tomorrow. Watch for comments in the statement and the Q&A regarding China, growth, and a global manufacturing slowdown. Any comments in these areas many also move the price of Crude Oil.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient.
Get The App
Any references to historical price movements or levels is informational based on our analysis and we do not represent or warrant that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness, nor does the author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.