Crude oil had a failed double top (M) completing June 28, failing to pass the neckline; thus creating a double bottom (W) completed July 7. With the 6% or 600 pip gain oil is still ranging in a consolidation zone. The consolidation zone began May 3rd. Price has broken out of the consolidation box with a slight wick. More price data is needed to determine if this will be another fake out or pullback with bullish continuation.
Bullish momentum from Friday's close needs to finish playing out to see a confirmation of a continued buy or reversal. Possible pull back to trendline around $71.70 price range, may likely resume the uptrend.
Long term when oil breaks out of consolidation it is expected for price to continue up with a unfinished double bottom (W) that formed march 7th of this year.
Following the busy Fourth of July holiday demand for oil is picking up with summer travel. 42.2 million people was the projected outlook for travel this past holiday, a 4% increase since 2019 and up 2.4% from 2022.
Oil production cuts are also taking place this month. Saudia Arabia announced June 4, 2023 a million barrel cut from 10 million barrels a day to 9 million barrels a day. In attempts to boost oil prices. With production cuts and demand increasing for summer travel, oil is likely to increase due to supply fears.
A Double Top formation (M) has formed on the 4hr for the Dollar Index. Also illustrating a regular bullish divergence; calculated for a 2% or 200 pip drop near the -61.80 reversal zone on the Fib Retracement.
Jobs report was released Friday; showed 209,000 workers hired in the month of June with a forecast of 224,000. Job growth is slowing which is good for the FED, not so good for the Dollar. Causing the dollar to fall; commodities rose off this reaction. Natural Gas briefly rose then continued with selloff.
Unemployment report was 3.6% for the month of June with no change from May's 3.6% report. Unemployment report is the percentage of the total work force that filed for unemployment and actively seeking employment during the previous month.
Bullish momentum from Friday's close needs to finish playing out to see a confirmation of a continued buy or reversal. Possible pull back to trendline around $71.70 price range, may likely resume the uptrend.
Long term when oil breaks out of consolidation it is expected for price to continue up with a unfinished double bottom (W) that formed march 7th of this year.
Following the busy Fourth of July holiday demand for oil is picking up with summer travel. 42.2 million people was the projected outlook for travel this past holiday, a 4% increase since 2019 and up 2.4% from 2022.
Oil production cuts are also taking place this month. Saudia Arabia announced June 4, 2023 a million barrel cut from 10 million barrels a day to 9 million barrels a day. In attempts to boost oil prices. With production cuts and demand increasing for summer travel, oil is likely to increase due to supply fears.
A Double Top formation (M) has formed on the 4hr for the Dollar Index. Also illustrating a regular bullish divergence; calculated for a 2% or 200 pip drop near the -61.80 reversal zone on the Fib Retracement.
Jobs report was released Friday; showed 209,000 workers hired in the month of June with a forecast of 224,000. Job growth is slowing which is good for the FED, not so good for the Dollar. Causing the dollar to fall; commodities rose off this reaction. Natural Gas briefly rose then continued with selloff.
Unemployment report was 3.6% for the month of June with no change from May's 3.6% report. Unemployment report is the percentage of the total work force that filed for unemployment and actively seeking employment during the previous month.