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.

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
EUR/USD
Bullish
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
Bullish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Geopolitical risks impacting markets in the week ahead: #AUD May Fall on US-China Trade Deal Fears, #CrudeOil Eyes #OPEC Meeting- https://www.dailyfx.com/forex/fundamental/article/special_report/2020/07/13/AUD-May-Fall-on-US-China-Trade-Deal-Fears-Crude-Oil-Eyes-OPEC-Meeting.html
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/wSHeU7aRoX
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -7.7% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2,1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.93%, while traders in US 500 are at opposite extremes with 76.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TRp6GF9snQ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.32% 🇬🇧GBP: 0.27% 🇪🇺EUR: 0.24% 🇨🇭CHF: 0.16% 🇯🇵JPY: 0.09% 🇳🇿NZD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/O81hxQPBpL
  • Heads Up:🇯🇵 Tertiary Industry Index MoM (MAY) due at 04:30 GMT (15min) Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.31% France 40: 1.23% FTSE 100: 0.94% Wall Street: 0.64% US 500: 0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YSclbAH1mY
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/sBmNFhegO2
Crude Oil Prices Stalling at Resistance, Multi-Week Uptrend at Risk?

Crude Oil Prices Stalling at Resistance, Multi-Week Uptrend at Risk?

2020-05-31 00:00:00
Dimitri Zabelin, Analyst
Share:

OIL PRICE OUTLOOK: BEARISH

  • Crude oil prices stalling at a critical juncture as upside momentum slows
  • Stubborn resistance may cause uptrend to break, selling pressure to swell
  • Monthly chart shows worrying outlook amid deteriorating fundamentals

Crude Oil Price Chart

Since bottoming out at a multi-year low at 16.01, crude oil prices have rallied and risen over 120 percent. However, recent price action suggests the cycle-sensitive commodity’s ascent may experience a pullback as it trades in a critical cross-section. The price parameters involve the mid-April uptrend and stubborn, familiar resistance at 36.45.

Crude Oil Prices – Daily Chart

Crude oil prices

Crude oil price chart created using TradingView

If the ceiling holds, the slope of appreciation that carried crude oil prices to their current levels will likely then be invalidated. A short-term pullback may then ensue, though selling pressure could start abating at a narrow support range between 28.70 and 29.10. However, if that floor cracks under the weight of sellers, it could open the door to retesting the multi-year swing-low at 16.01.

On the other hand, if crude oil prices bounce back from the 28.70-29.10 support zone, it could open the door to retesting the ceiling under which it had just capitulated. If upside momentum prevails and resistance is broken there, the next major obstacle to overcome will likely be the pre-OPEC meeting plunge at 45.51. Learn more about how geopolitical shocks impact markets here.

There is also the possibility that a congestive area may form between 36.45 and 29.10. Directionless trading in that range could signal an underlying indecision in the commodity’s short-term outlook. However, looking at a monthly chart shows a long and arduous road ahead for crude oil bulls.

Crude Oil Prices – Monthly Chart

Crude oil prices

Crude oil price chart created using TradingView

The wider timeframe shows crude oil prices have just recently recovered from retesting multi-decade lows following a market-wide, panic-induced selloff in growth-oriented assets. Even if the commodity is able to stage a recovery and surpass its pre-OPEC selloff high, a return to prices above $60 a barrel in the current fundamental environment appears unlikely in the medium-term outlook.

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.