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.

Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Why must financial market traders monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/AldbSctm9V
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/yF133btXFd https://t.co/Sjnr0iVgAf
  • Upside momentum stalls with the #DAX and #FTSE 100 vulnerable to testing lower levels as the economic backdrop deteriorates further. Get your #equities technical analysis from @JMcQueenFX here: https://t.co/BFIaXTfDcs https://t.co/q0Mso4zWlT
  • RT @iv_technicals: *TRUMP SAYS HE'D USE TARIFFS IF NEEDED TO PROTECT OIL INDUSTRY - BBG #OOTT #WTI $USO
  • After the pattern is composed with the closing of the signal candle, then you can look to the following candle to identify a clear bias and risk points. Learn how to apply this knowledge to a trading strategy here: https://t.co/uh3NwgHBVv https://t.co/yl4KUMNmUh
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia here: https://t.co/r3Ku0p9dw1 https://t.co/CU5vMilpLH
  • - Gold prices may suffer if FOMC minutes spark risk aversion, concerns about liquidity - #XAUUSD could face additional selling pressure if employment data sours sentiment - Ballooning credit risks from distressed corporate debt markets may cap gold’s gains https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/04/04/Gold-Prices-May-Fall-on-FOMC-Minutes-Recession-Credit-Risks.html
  • The bear flag pattern is a popular price pattern used by technical traders within the financial markets to determine trend continuations. Learn how to spot a bear flag pattern here: https://t.co/zg8QzS3ytS https://t.co/A8fvEmmh0K
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/VsfbITIb6B https://t.co/qSLzCiGVxa
  • S&P 500 Sinks as Unemployment Spikes; VIX Index Drops? -via @DailyFX “#StockMarket recovery stymied by dismal jobs report. #Volatility down, but extreme fear lingers.” Latest Forecast: https://www.dailyfx.com/forex/market_alert/2020/04/04/spx-sp500-sinks-as-unemployment-spikes-vix-index-price-drops.html $SPY $SPX $ES_F #Stocks #Analysis #Trading https://t.co/qwfhehTnbt
Oil Price Nears Important Chart Support Levels

Oil Price Nears Important Chart Support Levels

2018-02-08 11:30:00
Nick Cawley, Analyst
Share:

Oil Talking Points

- Brent Crude oil price nears a six-week low on larger-than-expected US Crude oil stockpiles.

- Technical support zone nears although supply fears and USD strength may test robustness.

Oil Sell-Off Nears Chart Support Levels

The latest US government oil report showed crude oil stockpiles rising unexpectedly by 1.9 million barrels against forecasts of 1.1 million barrel drop, sending the oil market tumbling lower. Brent crude tumbled through the 50-day EMA technical support for the first time since late August 2017, hitting a six-week low.

The oil complex as a whole has also been under pressure lately as the US dollar continues to make a comeback from its recent low, with a stronger US dollar making oil more expensive for non-US dollar buyers. The US dollar has been gaining strength since the end of last week when better-than-expected US jobs and wages data stoked expectations of higher inflation, sending US Treasury yields higher.

The latest oil market downturn has pushed Brent Crude close to a couple of important technical support levels, while one momentum indicator is flashing a heavily oversold signal. The chart below shows Brent nearing the 23.6% Fibonacci retracement level of the June 2017 – January 2018 rally at $64.645/bbl., a level in close proximity to the current 100-day EMA support at $64.30/bbl. In addition the stochastic indicator, a closely watched momentum gauge, is trading in heavily oversold territory, suggesting a turnaround in the price of oil may be close.

A break and close below these support levels however would leave the market open to a move down to the cluster of November/December lows around $61.05/bbl. and Fibonacci support at $60.80/bbl.

Brent Crude Oil Price Chart in US Dollars (May 2017 – February 8, 2018)

Oil Price Nears Important Chart Support Levels

Chart by IG

We have a wide range of Trading Forecasts and Guides available to help traders make more informed decisions.

--- Written by Nick Cawley, Analyst.

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES

News & Analysis at your fingertips.