Crude Oil, 240 min
On May 5th 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 today 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 lows increase the probabilities of this market breaking higher.
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.