News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Crude Oil Prices Dive From Daily Highs

Crude Oil Prices Dive From Daily Highs

Walker England, Forex Trading Instructor

Talking Points:

Crude Oil prices have turned off of their highs of the day, after initially advancing on news that U.S crude stockpiles fell 553,000 barrels last week. Initially after this news, Crude Oil prices spiked as high as $50.07. However, this move may be seen as a technical lower high, when compared to the peak in Crude Oil prices in October at $51.90.

Crude Oil 1 Hour

Crude Oil Prices Dive From Daily Highs

(Created using TradingView Charts)

As Crude Oil prices slide off of daily highs, traders may look to short term momentum cues to help decipher the commodities next move. Using the 5 minute graph below, the Grid Sight Index (GSI) has identified a short term downtrend forming in Crude Oil. After reviewing 3,917,735 pricing points, GSI has indicated that price action has continued to decline by $0.17or more in 71% of the reported 17 matching historical events. This places the first bearish historical distribution point at a price of $48.77. A move to this value would have aggressive bearish implications as Crude Oil would then be trading to daily lows.

Alternatively, GSI has indicated that prices have increased by $0.37 in 0% of the identified historical instances. While historical matching events have not reflected an advance in the past, if Crude Oil reaches the first bullish distribution at $49.31 it would suggest a turn in momentum. At this point traders should reevaluate Crude Oil’s short term trend, and look for prices to make a push back towards daily highs.

Crude Oil Prices Dive From Daily Highs

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

See Walker’s most recent articles at his Bio Page.

Contact and Follow Walker on Twitter @WEnglandFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES