Crude Oil Responding, Line in the Sand
Crude Oil (June)
Last week’s close: Settled 78.26, down 1.00 on Friday and up 0.15 on the week
WTI Crude Oil futures shed $1.00 on Friday, in a very disappointing session for the bulls. Given Wednesday’s outside bullish reversal and rejection of the consolidation pocket from March we have been highlighting, the lack of follow through Thursday was unenthusiastic before the psychological $80 mark kept a lid on prices. This morning, we are seeing a rebound into formed resistance created by the overhead damage from Friday’s fallout and noted in the levels below.
There was optimistic news over the weekend with Iraq agreeing to follow OPEC’s lead in extending the voluntary cuts, which is likely helping to buoy the market. However, fears of the trajectory of global growth remain a headwind. From Friday night, CPI data out of China nudged higher than expected +0.3% y/y versus +0.1% expected. However, on Saturday, New Loan data came in below expectations at 730 billion Yuan versus 1,200 billion Yuan expected.
Bias: Neutral/Bullish
Resistance: 78.87-78.92**, 79.13-79.26**, 79.90-79.96***, 80.74-80.88***, 81.93***
Pivot: 78.62-78.79
Support: 78.35-78.43**, 77.87-78.06***, 76.90-76.98***, 75.90-76.07***, 75.04-75.10**
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*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Last week’s close: Settled 78.26, down 1.00 on Friday and up 0.15 on the week
WTI Crude Oil futures shed $1.00 on Friday, in a very disappointing session for the bulls. Given Wednesday’s outside bullish reversal and rejection of the consolidation pocket from March we have been highlighting, the lack of follow through Thursday was unenthusiastic before the psychological $80 mark kept a lid on prices. This morning, we are seeing a rebound into formed resistance created by the overhead damage from Friday’s fallout and noted in the levels below.
There was optimistic news over the weekend with Iraq agreeing to follow OPEC’s lead in extending the voluntary cuts, which is likely helping to buoy the market. However, fears of the trajectory of global growth remain a headwind. From Friday night, CPI data out of China nudged higher than expected +0.3% y/y versus +0.1% expected. However, on Saturday, New Loan data came in below expectations at 730 billion Yuan versus 1,200 billion Yuan expected.
Bias: Neutral/Bullish
Resistance: 78.87-78.92**, 79.13-79.26**, 79.90-79.96***, 80.74-80.88***, 81.93***
Pivot: 78.62-78.79
Support: 78.35-78.43**, 77.87-78.06***, 76.90-76.98***, 75.90-76.07***, 75.04-75.10**
Sign up for a FREE trial of our daily research: bluelinefutures.com/free-trial/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Sign up for a FREE trial of our daily actionable research at bluelinefutures.com/free-trial/