Slobodan Drvenica
Windsor Brokers
WTI oil price managed to regain traction and edge higher on Tuesday after Monday’s fall was contained by 100DMA ($59.31).
Larger uptrend from $50.59 low showed initial signs of stall at important Fibo barrier at $60.47 (61.8% of $66.58/$50.59), where double-Doji has formed before Monday’s easing.
Bulls came under pressure after hurricane in the gulf of Mexico caused less than expected damage that resulted in restarting production on a number of oil platforms in the gulf.
Fears of fresh pressure on oil price on rising US shale production that is on track to reach record highs in August could put the price lower, with initial negative signal expected on violation of 100DMA and further evidence of deeper pullback expected on break below trendline support ($58.65) and 200DMA ($57.74).
Extended consolidation can be expected while the price stays between 100DMA and Fibo barrier ($60.47), while strong bullish signal could be expected on firm break above $60.47 pivot.
Daily techs are in mixed setup and lack clearer direction signal for now, as markets are awaiting release of weekly US crude inventories report (API due later today and EIA on Wednesday).
Res: 60.00; 60.47; 60.88; 61.38
Sup: 59.31; 58.65; 58.15; 57.74
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0700 ahead of US data
EUR/USD stays in a consolidation phase slightly below 1.0700 in the European session on Wednesday. Upbeat IFO sentiment data from Germany helps the Euro hold its ground as market focus shifts to US Durable Goods Orders data.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold manages to hold above $2,300
Gold struggles to stage a rebound following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% ahead of US data, not allowing XAU/USD to gain traction.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.