Crude oil target 3 hit with Chinese oil imports up 38%

June 8, 2016

Crude Oil, daily

Crude oil price is at the time of writing trading higher with support given to it by the hefty increase in Chinese import numbers, low  US oil inventories and fears that Nigerian oil production might attract new attacks from the rebels. Chinese trade data published today showed that crude oil imports to China rose 38.7% in May YoY. This was the biggest jump in the last six years and increased hopes that the Chinese economy (the world’s second-largest oil user) may be stabilizing. Now, that further supply distractions are possible and market participants believe that the oil market is becoming more balanced it prices are supported by the bidders.

I wrote in my May 5th report that wildfires in Canada’s oil sands area and fighting in Libya threatened the North African output and that together with the bullish technical picture we should see the prices moving higher. I gave a buy area ($43.20 – $44.00) together with three targets which have now been met after price first retraced to my buy area. The third target was at $50 to $51 range which is exactly where the market is trading at the time of writing this report.

The $50.89 resistance was able to turn the price lower in October last year and in theory could therefore act as a resistance again. However, the uptrend has been solid with the oil market finally finding (supply – demand) balance supporting higher prices. Also, the US driving months are ahead of us now. American holiday season traditionally increases demand while the Houston oil producer conference participants in May signaled that they will not be adding production before they’ve seen the price of oil settling in the range of $50 to $60. I’ll be looking for buy signals at supports as long as the uptrend is intact. The nearest daily support levels at the moment are at $49.40 and $50.20.

Publication source
HotForex information  HotForex reviews

October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...
October 21, 2016
Decisions on QE Postponed until December
Asian stock markets are narrowly mixed, with Japanese bourses managing marginal gains as the Yen falls against the Dollar. Stock futures in the U.S. are down...
October 21, 2016
EURUSD at $1.09, but declines could be limited
The ECB monetary policy meeting yesterday saw the euro give up its intraday gains to close on a bearish note. As Draghi signaled that the central bank would need time to assess the monetary policy situation...

FXTM Rating
FBS Rating
FIBO Group Rating
HYCM Rating
HotForex Rating
OANDA Rating

OptionBit Rating
Binary Brokerz Rating
Porter Finance Rating
OptionFair Rating
TopOption Rating
Grand Option Rating