Possible Short-Term Bullish Break Out on Oil Futures
The weekly candles on Micro Crude Futures appears to have a short term bullish break out taking place possible. If there is a break out then this could be bullish for the oil related tickers. Personally I would need to see a little more upside myself before I would jump into this possible rally.
$Imperial Petroleum(IMPP.US$ $Exxon Mobil(XOM.US$ $Chevron(CVX.US$ $Valero Energy(VLO.US$ $Phillips 66(PSX.US$ $Marathon Oil(MRO.US$ $Devon Energy(DVN.US$ $Houston American Energy(HUSA.US$ $Indonesia Energy(INDO.US$ $Mexco Energy(MXC.US$
Notice in the chart directly below how crude future's prices have been downtrending since June. The price action experienced a textbook bounce off of a support level from a previous high. I've highlighted that support level by the yellow horizontal trend line in the chart. A bounce in price action can be expected at a strong support level like this.
Notice in the chart directly below how crude future's prices have been downtrending since June. The price action experienced a textbook bounce off of a support level from a previous high. I've highlighted that support level by the yellow horizontal trend line in the chart. A bounce in price action can be expected at a strong support level like this.
On a more bullish note as you can see in the chart below how the price of crude seems to be breaking out above the downward trending resistance level that has held crude in this downtrend since last June. I've highlighted this resistance level by the purple line. It is quite bullish for the short term outlook after the price moved above this resistance level. So if the price can keep climbing to make a higher high than the peak from last week then this breakout could possibly be confirmed.
Personally I am less bullish on oil and commodities in general. I am under the assumption that all of these problems with oil should be getting better over time. But due to the energy crisis in Europe and the Russian War in Ukraine with all of its associated sanctions, not to mention the fighting in the middle east nobody is talking about, oil and other commodities prices have been very sensitive to any disruption to supply or demand of any kind it seems. All we can do is watch for legitimate developments in the news that would effect oil. And we can watch the technical levels to prepare for any possible price moves. Technically speaking, right now oil is about to break out to the upside of a three month downtrend. Things could start to get bullish on oil in the short term.
I should mention that if there is a legitimate rally in oil and the price climbs back to the previous highs around 130.00 then this would be bad for equity markets. High oil prices can lead to higher inflation. Higher inflation is bearish for the markets.
So is oil going to rally in September?
$SPDR S&P 500 ETF(SPY.US$ $SPDR Dow Jones Industrial Average Trust(DIA.US)$ $Invesco QQQ Trust(QQQ.US$ $iShares Russell 2000 ETF(IWM.US$ $Ishares Iboxx $ Investment Grade Corporate Bond Etf(LQD.US$ $Ishares Iboxx $ High Yield Corporate Bond Etf(HYG.US$ $VIX Index Futures(MAY4)(VXmain.US$ $Powershares Exchange Traded Fd Tst Db Us Dollar Index Bullish Fund Etf(UUP.US$ $SPDR Gold ETF(GLD.US$ $iShares Silver Trust(SLV.US$ $iShares 20+ Year Treasury Bond ETF(TLT.US$ $Copper Futures(JUL4)(HGmain.US$ $SSE Composite Index(000001.SH$ $Hang Seng Index(800000.HK$ $CSI 300 Index(000300.SH$ $FTSE Singapore Straits Time Index(.STI.SG$ $S&P/ASX 200(.XJO.AU$
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Orlando Rhys : Hello spydercall
CrazyEnuff : yup absolutely, we going back up!!
SpyderCallOP Orlando Rhys: hey
Trade2Swing : I am expecting an issue with the Presidential at middle east country, this would cause another surge to the crude oil. As long OPEC says we increase our output then it will go down otherwise it will remain high because they don't wanna see Crude Oil to be below $100
Orlando Rhys SpyderCallOP: How is your trade going?
SpyderCallOP Orlando Rhys: had to cover longs in oil today. im playing the price channel that crude has been in for several weeks.
SpyderCallOP Trade2Swing: agreed.
there is a lot of turmoil in the middle east. there is fighting in Syria, Ethiopia, and many other oil countries in that part of the world. there is not a lot of talk on the main stream news in the US because the fighting started when the US left Afghanistan basically.
Is there a Presidential election about to happen in the middle east??
SpyderCallOP Orlando Rhys:
Orlando Rhys SpyderCallOP: Ok
Orlando Rhys SpyderCallOP: Eve tried looking into crypto currency day trading?
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