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.

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
Bullish
Oil - US Crude
Mixed
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
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.94%, while traders in EUR/USD are at opposite extremes with 75.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/DZj92MD3hm
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:https://t.co/vytr4OR1Jy https://t.co/qWGrrAmsYN
  • New Zealand new home lending increases 6.3% MoM to a record NZ$7.78B - BBG $NZDUSD
  • If you missed today's session on IGCS where I discussed #DowJones, #SP500, #CrudeOil, $GBPUSD and #Gold prices, check out the recording on YouTube here - https://t.co/smORERZuGX
  • Wall Street Futures Update: Dow Jones (+0.437%) S&P 500 (+0.468%) Nasdaq 100 (+0.706%) [delayed] -BBG
  • #Copper extending gains to highest since 2014 in London -BBG
  • Hang Seng Index (HSI) has likely broken a key resistance level of 26,840, propelled by financial stocks: - HSBC (+5.28%) - Standard Chartered (+3.59%) - Ping An Insurance (+2.45%) https://t.co/XBv5In1NJ5
  • Japanese PM Suga says Japan doing everything it can to protect jobs - BBG
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/wMZn4SDCp8
  • Precious Metals Technical Analysis: #Gold and #Silver Rebound at Hand? - https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2020/11/25/Precious-Metals-Technical-Analysis-Gold-and-Silver-Rebound-at-Hand--.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GLD $SLVR https://t.co/wHwsO23TLu
Crude Oil Working On Extension Higher After Breaking Above Resistance

Crude Oil Working On Extension Higher After Breaking Above Resistance

2017-09-19 10:00:00
Tyler Yell, CMT, Currency Strategist
Share:

Key Takeaways:

  • Crude Oil technical strategy: watching for potential to extend to $53.94, 100% Fib extension
  • Break above trendline confluence opens upside targets, aligns with sentiment bias
  • IGCS Highlight: USOIL sharp increase (42% w/w) in net-short position keeps ST focus higher

Crude Oil bulls are likely breathing a sigh of relief. Without aggressive volume, the price of Crude Oil has surpassed a confluence of resistance that combined the 200-DMA ($49.55/bbl) as well as two trendlines that are drawn off lower-highs from the 2017 downtrend. Now, the key questionare whether or not the downtrend is over?

You can see on the chart below that we’ve produced higher lows in the markets and are working on our first higher high (surpassing the early August high) of 2017. The good news (for Crude Bulls) is that the sentiment picture per IGCS aligns with further strength. There is more information on Crude-specific IG client sentiment below.

The next level of focus will be a daily close above the August high, which would then bring about a target of $51.97 (late-May high) followed by the 100% Fibonacci extension of $53.94. One boon for the higher price of Crude Oil has been the US Dollar (Dollar Index – DXY). The weakness of DXY has provided price support for the price of Crude Oil. A further drop in the US Dollar, which is sure to see volatility with the FOMC meeting on Wednesday, September 20 could further support the price of Oil.

As demand forecasts shift higher, check out our free forecast on Crude Oil prices

Daily US Oil Chart: Breakout above resistance and sentiment favors approach to resistance

Crude Oil Working On Extension Higher After Breaking Above Resistance

Chart Created by Tyler Yell, CMT

US Oil Insight from IG Client Positioning: sharp increase in net-short position keeps ST focus higher

The sentiment highlight section is designed to help you see how DailyFX utilizes the insights derived from IG Client Sentiment, and how client positioning can lead to trade ideas. If you have any questions on this indicator, you are welcome to reach out to the author of this article with questions at tyell@dailyfx.com.

Crude Oil Working On Extension Higher After Breaking Above Resistance

Oil - US Crude: Retail trader data shows 44.2% of traders are net-long with the ratio of traders short to long at 1.26 to 1. The number of traders net-long is 2.4% lower than yesterday and 28.5% lower from last week, while the number of traders net-short is 1.1% higher than yesterday and 43.2% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests Oil - US Crude prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Oil - US Crude-bullish contrarian trading bias(emphasis added.)

---

Written by Tyler Yell, CMT, Currency Analyst & Trading Instructor for DailyFX.com

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

Contact and discuss markets with Tyler on Twitter: @ForexYell

Access Our Free Market/ Trading Guides Here:

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

DISCLOSURES