Fundamentals :
Crude oil prices rebounded after three consecutive days of losses. The move may have followed from the announcement that Harvey has been downgraded to from a tropical storm to a “depression”, hinting that US refining capacity – which has been brought to a seven-year low – may start to be rebuilt relatively soon.
Pipeline and refinery closures courtesy of the storm disrupted the flow of raw material to producers of gasoline, distillates and other processed products. This dealt a heavy blow to the process of working down a supply glut that has weighed on the WTI benchmark for much of the year.
In our opinion, you can not set up your trade based on the news in the manner specified above.
An EIA report showing US crude output fell 0.8 percent in June may have also offered support. Production registered at 9.1 million barrels per day, down from 9.17 million in May and lower than the 9.32 million estimate implied by an average of weekly statistics.
We will look at the technicals :
The picture is clear on WTI CRUDE OIL Daily Chart. As I have mentioned in my previous analysis Crude Oil broke the triangle downward and tested 45.50. And tried to make an upside attempt.
RSI is still bearish on the daily chart. ATR 111 pips.
The current price of Crude Oil is 46.87 and this level is one of the critical levels. The price is just below MA50 and MA12 is acting like an support. If the price breaks below 46.87 ( an hourly closing needed ) 46.46 and 46.15 will be tested.
Upside resistance levels are 47.60 and 48.15. We have already short positions and we will not add anymore till the price makes hourly closing above 46.12.
Trader who want to enter a trade, can enter SHORT from current level 46.87 with SL 47.30 targeting 46.15.
Crude oil prices rebounded after three consecutive days of losses. The move may have followed from the announcement that Harvey has been downgraded to from a tropical storm to a “depression”, hinting that US refining capacity – which has been brought to a seven-year low – may start to be rebuilt relatively soon.
Pipeline and refinery closures courtesy of the storm disrupted the flow of raw material to producers of gasoline, distillates and other processed products. This dealt a heavy blow to the process of working down a supply glut that has weighed on the WTI benchmark for much of the year.
In our opinion, you can not set up your trade based on the news in the manner specified above.
An EIA report showing US crude output fell 0.8 percent in June may have also offered support. Production registered at 9.1 million barrels per day, down from 9.17 million in May and lower than the 9.32 million estimate implied by an average of weekly statistics.
We will look at the technicals :
The picture is clear on WTI CRUDE OIL Daily Chart. As I have mentioned in my previous analysis Crude Oil broke the triangle downward and tested 45.50. And tried to make an upside attempt.
RSI is still bearish on the daily chart. ATR 111 pips.
The current price of Crude Oil is 46.87 and this level is one of the critical levels. The price is just below MA50 and MA12 is acting like an support. If the price breaks below 46.87 ( an hourly closing needed ) 46.46 and 46.15 will be tested.
Upside resistance levels are 47.60 and 48.15. We have already short positions and we will not add anymore till the price makes hourly closing above 46.12.
Trader who want to enter a trade, can enter SHORT from current level 46.87 with SL 47.30 targeting 46.15.
