Forex Marketz Daily Forex News – Fully Markets Update
WTI Crude Oil (47.67)
Some point to consider in this commodity market:
- Momentum shows that crude oil can move higher.
- The next test for oil is at the 200 daily moving average (DMA).
- Trade strategy: Stand aside
WTI Crude Oil price have gapped higher and are now testing three week highs. There has been heightened investor speculation that crude demand is increasing as refineries, in the US, are lowering production. This is causing price to go up. On the flip side, metals ended yesterday deeply in the red down one percent or more. However, crude was up 3.8 percent as economic data is beginning to stabilize. This could chip away at inventories as demand for the black gold increases.
Technical Analysis
Looking at the above WTI Crude daily MT 4 chart, prices are moving higher from $43 per barrel. This is the support and possible bottom now in place. It is easy to point out the correlation with the rising S&P 500 after its aggressive bottoming on August 24. Crude is now inching higher to test the 200 DMA, which for today is at $51. The only way this can happen, is if oil stays above $43. A daily close above $51 paves the way to challenge the next upside barrier at $54.95. Additionally, both the MACD and RSI oscillators show room for more crude oil gains.
Trade Strategy
Looking at price history, going back to the beginning of 2015, prices have usually bounced higher at the end of a calendar month. These bonces occurred in January, March, and August. All of these months saw similar recovers late in the month. These moves higher, which averaged around ten percent, hints that the black gold has more gas in the tank. Still, I would need to see a daily close above the 200 DMA for confirmation. For today, I am flat in this commodity market.
