Crude oil hits target 1

May 9, 2016

On May 5thВ I wrote about wildfires in Canada’s oil producing regions and about US oil production dropping to lowest level since Sept 2014, sinking by more than 100k barrels a day in the week up to April 29th. Based on the fundamentals suggesting less supply and technicals indicating that the prices could move higher I said that I’d be interested in long entry signals inside my buy area at $43.20 – $44.00 with Target 1 at $45.00 – $45.50 and Target 2 at $46 – $46.70.

Crude oil retraced to my buy area on Friday, gave a buy signal and hit target 1 on the same day. Now price has rallied further and has almost touched the target 2. According to Reuters oil producers and refiners braced todayВ for further supply constraints from the wildfires that have shut one half of Canada’s vast oil sands capacity and forced BP and other big oil firms to warn they would not be able to deliver on some contracts.

Price is currently trading near the upper daily Bollinger Bands and the recent highs. Therefore resistance levels of the recent trading range are near but at the same time the price of oil has created two higher reaction lows in the 4h chart. The higher lowsВ increase the probabilities ofВ this market breakingВ higher.

Publication source
HotForex information  HotForex reviews

September 26, 2016
Markets will continue to look to Fedspeak
Lots of speeches from all around the globe this week, but focus now turns to the US Presidential election, with all eyes on Monday Trump-Clinton debate (up to 20% of US voters remain undecided)...
September 26, 2016
Dollar Trades Mixed. Draghi's Speech Awaited
The US dollar is trading mixed in early Asian trading as a rather slow day will see speeches from central bank governors including Kuroda, SNBs Jordan and Mario Draghi...
September 23, 2016
The dollar has firmer back some following yesterday underperformance
Revealed weak August data for existing home sales and leading indicators, but a tight initial claims report for the BLS survey week of September that left mixed signals that were positive on net, with aid from a 0.5% July rise in the FHFA home price index...

OANDA Rating
Orbex Rating
FXCM Rating
HYCM Rating
OctaFX Rating
FXTM Rating

EZTrader Rating
OptionTrade Rating
OptionRally Rating
TopOption Rating
Grand Option Rating
Beeoptions Rating