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 Still at Risk After Hitting 2-Month Low

Crude Oil Prices Still at Risk After Hitting 2-Month Low

Ilya Spivak, Head Strategist, APAC

CRUDE OIL OUTLOOK:

  • Crude oil prices seem biased lower in risk-off trade
  • US PMI survey, API inventory flow figures in focus
  • Key three-year chart barrier pressured once again

Crude oil prices have paused to digest losses after dropping to the lowest level in nearly two months. A risk-off backdrop might somewhat bias the scales in sellers’ favor. The WTI contract is pressuring the bottom of its three-day range having slumped along side S&P 500 futures in Asia-Pacific trade.

November’s US Manufacturing PMI data is in focus ahead. It is expected to show that activity growth accelerated from October, breaking a three-month losing streak despite gaps in global supply chains. The private-sector API estimate of weekly inventory flows is also on tap.

The latter will be judged against bets on a 1.47-million-barrel draw expected in official EIA statistics due on the following day. The former may have scope for an upside surprise. Data from Citigroup shows that recent news-flow has tended to outperform relative to baseline forecasts.

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are retesting a three-year resistance-turned-support level anchored at 75.27. Breaking below this barrier – with confirmation on a daily closing basis – may set the stage for a test of the $70/bbl figure, with perhaps a bit of friction near 73.14 along the way.

Immediate resistance is capped at 79.60, the upper bound of a former support shelf. Reclaiming a foothold back above that might translate into enough momentum to pressure the swing high at 85.41 once again.

Crude Oil Prices Still at Risk After Hitting 2-Month Low

Crude oil price chart created using TradingView

CRUDE OIL TRADING RESOURCES

--- Written by Ilya Spivak, Head Strategist, APAC for DailyFX

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES