Oil swings back into focus

22 September, 2017

Oil swings back into focus

OPEC members have gathered in Vienna to discuss the current state of monitoring in the oil market and with non OPEC members as well. The main basis of this talk will be to go over the details of how the OPEC cuts have affected the market glut, and to brainstorm around the current situation. While not a major decision making meeting the market is positive and bullish about oil nevertheless. A number of factors have been behind oils recent rise, including a weaker USD dollar, a reduction in supply, and of course an increase in oil demand from end users. So while all this talk of Oils demise has been going on for some time, it seems the market has thus far surged back and is showing no signs of letting up. Adding further pressure is also the fact that Venezuela looks like it could implode on itself and obviously this would have an impact on the oil markets as well.

On the charts the technical's are looking very strong as of late, the current wave higher shows a higher high on the previous one and is looking very much the bullish move. Oil does like to play to its technical's a lot of the time, and this can be seen in a large amount of its movements. So far oil has managed to hold above the psychological level of 50 dollars a barrel which is a positive sign. Support is likely to be maintained at this level with 48.82 there to catch any large spikes that the bears get a hold of. For bulls looking higher resistance at 52.10 looks like the first major level with 53.70 the second level above this and also looking very strong.

Silver markets have also been trending lower as of late and this should come as no surprise given the recent resurgence in the USD and of course the relaxed state of affairs globally. Both Russian and North Korea have so far stopped causing problems. However, today's talk about a pacific H bomb test should be viewed with a pinch of salt, given the damage it would do to the environment and neighbouring countries. For me silver will always be the speculators best friend and right now it's looking like it still has a lot more movement to do.

On the chart it's clear the bears have taken a hold on the stronger USD and it has stretched down near support at 16.600. Expectations are building that it could indeed crash through here and move to the next level at 16.150. I expect there could also be stronger movements in the event North Korea did conduct a pacific H bomb test and resistance at 17.352 and 17.696 could also be tested. It's also worth noting the 200 day moving average which is acting as dynamic support and resistance at present. 


Source link  
Global markets start the week off strong

Global investors are looking unfazed at the start of the week as global equity markets lifted and the USD continued to lose ground in the Monday session...

Xi Jinping provided equity bulls a boost

Appetite for risk bolstered Tuesday morning, as Chinese President Xi Jinping offered plans to further open up the second largest economy...

US markets continue to shine

Large swings in the equity markets have been the recipe of the day recently, as they swung lower on the back of political tensions in the US markets...


Global markets consolidate

Investors are likely to have breathed a sigh of relief after the US stock markets’ worst start to the second quarter since the 1929 Great Depression...

S&P 500 breaks 200 day moving average

Easter Monday is normally characterised by light trading, but today was anything but out the ordinary, as the US equity markets swung...

Attention turns back to data this week

Asian equities kicked off Q2 on a positive note, taking their cue from Wall Street’s rally on Thursday. The gains came despite China imposing...


US data fails to impress markets

It has been a positive day for the American economy as US GDP was stronger than expected coming in at 2.9% (2.7% exp), show casing...

Markets continue to look unsettled

Markets were looking a little unsettled today after yesterdays bullish rise in equity markets. Many had expected that potentially today would see equity...

Trade concerns remain in focus

Financial markets remain on high alert as the U.S. – China trade war fears are providing the needed incentive for bears to take control. Friday's sell-off in...

  


Share: