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
Mixed
Oil - US Crude
Bearish
Wall Street
Bullish
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
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.50% Gold: -0.32% Silver: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Rrzzjyfqmz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.44%, while traders in US 500 are at opposite extremes with 77.37%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jjChVG5cqm
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: 1.28% Wall Street: 1.15% France 40: 0.15% Germany 30: 0.08% FTSE 100: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vL9MgyBJF5
  • As risk sentiment takes a turn lower, high-beta currencies such as the Australian Dollar has been among the underperformers. Get your $AUDUSD market update from @JMcQueenFX here: https://t.co/nXadRykouT https://t.co/szzQ0PKNR2
  • Heads Up:🇨🇦 BoC Gov Poloz Speech due at 17:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.43%, while traders in US 500 are at opposite extremes with 77.00%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xjdScTDBXn
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 2.57% Gold: -0.32% Silver: -0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nRUi0hbwoO
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.28% 🇬🇧GBP: 0.25% 🇦🇺AUD: 0.17% 🇨🇭CHF: 0.04% 🇯🇵JPY: -0.07% 🇪🇺EUR: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/noQ2M4dTit
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 1.29% Wall Street: 1.24% France 40: 0.15% Germany 30: 0.10% FTSE 100: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/AiUmtoNeVW
  • The British Pound is under renewed selling pressure this morning after BoE deputy governor for banking and markets said that the central bank is keeping ‘our whole tool set under active review'. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/fY4HewczpL https://t.co/AX1qMeq8ks
Crude Oil Weekly Outlook: Rally Runs Into Resistance as Risk-On Appetite Stalls

Crude Oil Weekly Outlook: Rally Runs Into Resistance as Risk-On Appetite Stalls

2020-05-23 00:00:00
Nick Cawley, Strategist
Share:

Crude Oil Price, Chart and Outlook.

  • Recent rally stalls on increased political tensions.
  • A bullish series of higher lows and highs are now broken.
Oil - US Crude BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 9% 0% 5%
Weekly 7% -10% 0%
What does it mean for price action?
Get My Guide

US-China Tensions Weigh on US Crude Oil

US-China headlines are starting to press down on the price of oil ahead of a long weekend where turnover will likely be low. This week the US Senate passed legislation that could see Chinese companies banned from listing on US exchanges, which is likely to provoke a strong response from Beijing, while President Trump continues to blame China for not containing, and being more transparent about, the COVID-19 virus. In addition, China is looking to further impose its will on Hong Kong by unilaterally passing a new set of security laws forbidding secession, foreign interference and sedition. An escalation in tension between the US and China will hurt any nascent global rebound.

The technical set-up for oil remains positive but the recent flare-up in political tensions will likely see oil consolidate in the near-future. The recent rally of the sell-off spike low found little in the way of resistance since the $7.55/bbl. print on April 21, with higher lows and higher highs seen on the chart. Today’s sell-off has halted that pattern and oil will need to take stock if it is to press higher. The 20-dma has moved through the 50-dma, highlighting the recent positive sentiment. If oil pushed higher, it will shortly encounter a gap on the daily chart between $36.59/bbl. and $41.19.4/bbl, an area that has not been traded in for over three years. This vacuum may prompt volatile price action and traders should be wary if oil takes out Thursday’s high of $34.70/bbl. and nears the lower bound of the trading gap.

Understanding the Core Fundamentals of Oil Trading
Understanding the Core Fundamentals of Oil Trading
Recommended by Nick Cawley
Understanding the Core Fundamentals of Oil Trading
Get My Guide

US Crude Oil Daily Price Chart (November 2019 – May 22, 2020)

US Crude Oil

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.

What is your view on Crude Oil – bullish or bearish?? You can let us know via the form at the end of this piece or via Twitter @nickcawley1.

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

DISCLOSURES

News & Analysis at your fingertips.