Tactics and Analysis, August 7, 2017 – U.S. Crude Oil Continues Consolidation

Yaron Mazor
Updated
0

Support continues to be strong around 49.00 U.S Dollars a barrel for U.S Crude Oil. Traders may be tempted to look for upward reversals upon support being tested in the short-term.

Short Term Advantages of U.S. Crude

While Opec members and Russian producers meet again today to discuss Crude Oil production, the U.S commodity continues to trade in a rather consolidated manner.

However, the consolidation of U.S Crude Oil has been highlighted by reversals the past week, which opens the door for short-term traders who have the patience and risk management capabilities to take advantage.

Crude Oil 1H Chart
Crude Oil 1H Chart

The price of 49.50 U.S Dollars appears to be a focal point, but resistance could be interpreted at 50.00 U.S Dollars a barrel.

A Trend Higher Since Mid-June

Crude Oil has faced a fierce mid-term battle for value. But since the middle of June, it has shown the ability to trend higher.

Crude Oil 4H Chart
Crude Oil 4H Chart

While speculative forces are an important force in the energy sector, investors maybe beginning to shift their opinions regarding U.S Crude Oil’s outlook.

Looking for Upside near Support

Questions remain prevalent regarding the influence of Natural Gas on the Crude Oil market internationally, but Crude Oil has held it value the past month and a half.

Interesting data from China this week could influence the price of U.S Crude Oil. If China’s economy is perceived to be achieving better results, investors may believe demand for the commodity will increase. In the meantime, traders have proven support appears strong around 49.00 U.S Dollars a barrel, and they may continue to be tempted to be buyers at this level while looking for reversals.

Crude Oil Daily Chart
Crude Oil Daily Chart

In the short term, we believe Crude Oil may be positive. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

SuperTraderTV Academy is a leader in investing and stock trading education. Sign up for a class today to learn proven strategies on how to trade smarter.

This article was originally posted on FX Empire

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