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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
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
  • Heads Up:🇨🇳 House Price Index YoY (APR) due at 01:30 GMT (15min) Previous: 4.6% https://www.dailyfx.com/economic-calendar#2021-05-17
  • Wall Street stocks closed broadly higher, setting a positive tone for Asia-Pacific markets at the weekly open. April retail sales growth fell short of expectations, cooling fears about tapering Fed stimulus. https://www.dailyfx.com/forex/market_alert/2021/05/17/Dow-Jones-Hang-Seng-ASX-200-Outlook-Tech-Rebound-Bolsters-Risk-Appetite.html https://t.co/nPgJAQVSzh
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30AM EST (12:30 GMT) on DailyFX!! - https://t.co/lxd5fZnn4H
  • 🇯🇵 PPI YoY (APR) Actual: 3.6% Expected: 3.1% Previous: 1.2% https://www.dailyfx.com/economic-calendar#2021-05-16
  • 🇯🇵 PPI MoM (APR) Actual: 0.7% Expected: 0.5% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-05-16
  • 🇯🇵 PPI YoY (APR) Actual: 3.6% Expected: 3.1% Previous: 1% https://www.dailyfx.com/economic-calendar#2021-05-16
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/Yo3MIcZ40C
  • 8 out of 9 Dow Jones sectors ended higher, with 83.3% of the index’s constituents closing in the green. Energy (+2.62%), materials (+2.57%) and financials (+2.20%) were among the best performers, while communication services (-2.01%) trailed behind. https://t.co/N92M1qPfCX
  • RT @Fxhedgers: MUSK DOESN’T DENY THAT TESLA SOLD ALL THEIR BITCOIN HOLDINGS - TWEET
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/CDAmncXkaR
Crude Oil Price Forecast: Possibly The Most Encouraging Move of 2017

Crude Oil Price Forecast: Possibly The Most Encouraging Move of 2017

Tyler Yell, CMT, Currency Strategist

Access Free Oil Trading Guide from DailyFX Analysts HERE!

Talking Points:

  • Crude Oil Technical Strategy: Price bouncing off support (50/52) favors eventual upside
  • Crude Oil Finds a Higher Floor
  • Resistance set at corrective double top at $54.29/31 per barrel, evening star top

Strong OPEC compliance has led to a rally in the Crude Oil market with the group’s “secondary source,” showing a nearly 92% compliance rate from the cuts agreed upon production cuts that OPEC agreed to in late 2016. Despite the encouraging data regarding reduced supply, the Baker Hughes Rig Count rose by 8 for the fourth straight weekly gain to a total of 591 active rigs in the US.

There has been a credible view passed around that OPEC’s reduction in supply is being countered by the Shale Drillers in North America extending production as Oil remains comfortably above the $50/bbl level. While we have two competing fundamental developments with a reduction in OPEC production and an increase in US Shale Production, we have stability on the charts that could favor further upside.

The chart shows a polarity zone that once acted as resistance and now appears as price support. Given the historical developments when OPEC has cut production, which led to a ~565% increase from the 1999 cut and a 156% rally from the late 2008 production cut per Bloomberg, there is a reason to remain very optimistic as the price remains above the Ichimoku Cloud and the Polarity zone.

The Bulls would likely lose their confidence on a weekly close below the Daily Ichimoku Cloud that aligns with the 50% retracement of the November-January rally ($42.23-$55.21/bbl). A move above the $54.29/31 recent lower-high would encourage the view that wee could soon see Oil break higher. Another encouraging sign for Crude Bulls is that WTI 2nd-month implied volatility remains at lowest sinceOctober 2014.

From a positive correlation standpoint, USD/CAD remains inversely correlated with USOIL (CAD positively correlated to USOil over 20-days at +0.476) that would show that a breakdown in USD/CAD may also align with a break higher in USOIL.

Join Analysts Throughout The Week For Free Webinars Covering The Key Market Moving Stories & Trades (Free Registration)

D1 Crude Oil Price Chart: Crude Oil Volatility Is Subdued, Price Bounce From Support Favors Upside

Please add a description for the image.

Chart Created by Tyler Yell, CMT Courtesy of TradingView

---

Key Levels Over the Next 48-hrs of Trading as of Friday, February 10, 2017

Crude Oil Price Forecast: Possibly The Most Encouraging Move of 2017

T.Y.

To receive Tyler’s analysis directly via email, please SIGN UP HERE

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

DISCLOSURES