Crude Oil Price Lower But Remains Range Bound
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Brent Oil and US Crude Oil Prices and Charts:
- Range bound for now, bids move marginally higher.
- Technical set-up clouded by short-dated moving averages.
Crude Oil Continues to Build a Range
Brent crude continues to trade with a 6-handle and is seemingly stuck in a one-month trading range between $59.00/bbl. and $63.60/bbl. as supply and demand continue to re-balance. Price action is currently stuck between the 20- and 50-day moving average, with the 61.8% Fibonacci retracement level at $60.62/bbl. providing additional support after having held firm this week. Retail sentiment remains bearish however with investors net-long by a ratio of close to 3:1. Institutions also increased their holdings of Brent crude at the end of January with the latest ICE Futures data showing holdings increasing by 30 million barrels to 233 million barrels, according to Reuters. The oil market has also been aided by a slight pick-up in risk sentiment over the last month as US-China trade tensions are dialled down a touch.
IG Retail Sentiment data show that traders are 74.6% net-long US crude oil – a bearish contrarian set-up.
Ahead this afternoon, US crude oil, and gasoline inventories before Friday’s regular Baker Hughes rig count.
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Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.
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