2023-05-09 • Updated
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel. However, the Brent contract is more than 6% lower for the week, and the Nymex contract has fallen by over 8%. The market remains negative, suggesting there could be more downside in the near term, though support near $70 per barrel is expected. Despite the downturn, the crude market is still expected to be in deficit over the second half of 2023, which should drive prices up. Let's now go over to the charts to decipher whatever the price action has in store.
USDCAD on the daily timeframe has just recently broken below the resistance trendline of a wedge pattern. The most recent low has been marked with a horizontal arrow, and I expect the price to create a new low that would be lower than that area. What this means is that the Canadian may get stronger, leading to higher Oil prices.
Analysts’ Expectations:
Direction: Bearish
Target: 1.32795
Invalidation: 1.34540
US Crude, as seen in the chart above, is trading within a descending channel, with a recent rejection of the trendline support of the same channel. Price will apparently head for the 200-period moving average, but I'll also cautiously watch for reactions from the 100 MA.
Analysts’ Expectations:
Direction: Bullish
Target: $77.04
Invalidation: $69.58
Brent (XBRUSD) has recently bounced off the drop-base-rally demand zone within the descending channel it has been riding in for almost a year. The price action suggests that the price is in search of a strong resistance that may be capable of pushing prices lower; in the meantime, however, I think we're bullish until that resistance level is found - possibly at the 100-day moving average.
Analysts’ Expectations:
Direction: Bearish
Target: $80.86
Invalidation: $74.71
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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