Oil markets are sliding down the charts and that is somewhat expected as of late. Markets have continued to push lower as of late and a double bottom on the 48.71 had been ominous of a large scale pull back as the bulls had been looking for opportunities. However the market failed to find ground to go further and has since looked to push lower.
For oil markets, it’s possible we could see a further run from the bulls tonight and a solid retest of the 50.10 level. However, the market while looking bearish is looking for a point to push back down and the 50.10 level is where the bears will be looking to rush into with the backing of the trend line.
For market participants the next levels down are 46 and 44 dollars and the market may even look to push further, but it’s too early to tell if the 48.71 level is going to give way, but what markets will be looking for here is a big swing in order to make the most of trading conditions at present.
The main thing that will be key is crude oil inventories due out at 15:30 GMT, expect a big swing from the market here. The levels on your chart will be key to play this out. Last week’s aggressive pullback was sold down heavily and it’s possible that a pullback based on fundamental data may continue to get sold as the market believes oversupply is a persistent problem in the long run until demand picks up – which is looking some way off when you look at the current global economy.
Orders below the 48.71 could also catch a fair bit of momentum as well and traders will be looking for this level to snap and the selling freight train to continue. The question is which will it swing and if levels will hold in the long run?
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.