Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil: Technicals Point To Possible Break Out

ByBlackwell Global
AuthorAlex Gurr
Published 11/21/2013, 06:02 AM
Updated 05/14/2017, 06:45 AM

Oil futures, are one of the most popular futures for many traders, and traders are starting to watch, and wait, on heavy movements that are in the works for oil futures, as it starts to squeeze on technical trend lines.
Oil Daily
Current market technicals are pointing to a squeeze on oil as it touched on the bullish trend line from 2008. Traders should be paying special attention to this as it could point to the breakout markets have been looking for to help push oil futures up. As the current bearish trend line and bullish trend line converge, we could see a solid break out and the bullish uptrend continue.

At the same time, a breakthrough would to me point to further bearish sentiment which could push down to the 85 dollar mark. Either way it's certainly looking likely that big things are on the horizon for oil.

Market sentiment though is clear and fundamentals could still push on the pair. But over all recent crude inventories have shown surpluses in five out of the last six weeks as American consumers are not consuming as much as predicted during the government shutdown and after in the lead up to Christmas.

Will this change overall? I think not. But I also believe market technicals will take charge when it comes to oil and force it to play within the current trend lines. Currently the low it has touched on has sparked a rally back against the pair and its likely that markets will certainly look to push back after this touch. The moment of truth will either happen as it crashes through the bullish trend line, or alternatively jumps up through the bearish trend line, signalling an end to this bearish run. Either way, the next six to seven trading days will certainly be ones to watch when it comes to this pair as it looks to make a big move.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.