It’s A Crude World - Oil Jump Creates New Tradeview

It’s A Crude World - Oil Jump Creates New Tradeview

Eliman Dambell  | Sep 16, 2019 13:05

When the markets closed on Friday, traders and investors alike may have had reason for optimism. S&P 500 approaching a record high, Gold nearing a 4-week low as the attraction of safe havens seemed to have started to diminish.

The US and China sounded optimistic of further trade talks, with both also recording better than expected retail sales and CPI figures for August respectively. Crude Oil broke the $57 resistance for the first time since the end of July, reaching a high of $59, before selling off on news of that oil inventories were higher than expected at -6.912M.

This led to a Friday close of $54.83, which had been the floor for the past month. Were we going to see another bout of consolidation between support and resistance? This would have been the question many have asked. Then come the weekend.

Just before the open on Sunday evening, news broke that 5% of the worlds reserves were wiped out in drone attacks on Saudi Arabia , leading to a dead cat bounce with WTI hitting $61 and Brent $71, which was a rise of 20%. The largest intraday jump in history.

Crude Oil Daily Chart

CrudeOil - Daily Chart - provided by Tradeview Markets

This rise swiftly ended at the resistance of $61 however, with Trump tweeting the US was “locked and loaded” for retaliation on culprits, and there will be “plenty of oil” available to make up for the shortage. Technials tell us the RSI volume at 63, means although close, the markets still aren’t overbought, so if this story does escalate, Crude Oil prices may in fact follow that upward momentum.

Now the question for this week will be, are traders going to flee back to safety, propping up the likes of Gold and JPY? Or will the bulls rally onwards, taking no prisoners in the process.

Eliman Dambell

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.