Tag Archives: Crude Oil Futures Trading

Crude Oil

Crude Oil Futures Analysis- 18Feb2020

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Fundamental Analysis
Crude Oil futures traded lower during the Asian session at 51.95, tracking losses in financial markets on concerns over the economic impact of the coronavirus outbreak in China and its effect on oil demand. The number of new coronavirus infections in mainland China fell below 2,000 on Tuesday for the first time since January, Chinese health officials said.

The International Energy Agency said last week that the coronavirus was set to cause oil demand to fall by 435,000 barrels per day year-on-year in the first quarter, in what would be the first quarterly drop since the financial crisis in 2009.

Investors are also anticipating that the OPEC and its allies, including Russia, will approve a proposal to deepen production cuts to support prices. Oil output from Libya has fallen sharply because of a blockade of ports and oil fields by eastern-based commander Khalifa Haftar. Libya’s National Oil Corporation(NOC) said on Monday that oil production was at 135,745 barrels per day Monday, compared with 1.2 million bpd before the stoppage.

Technical Analysis
Indicator – Signal
SMA 20 Sell
SMA 50 Sell
SMA 100 Buy
MACD(12;26;9) Buy
RSI(14) Neutral
Stochastic(9;6;3) Buy

Support & Resistance Table
Resistance 2 52.75 Daily R2
Resistance 1 52.35 Daily R1
Support 1 51.56 Daily S1
Support 2 51.18 Daily S2

Bonus Trades, Crude Oil

Crude Oil Futures Analysis- 20Nov2019

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Crude Oil Futures have closed today at $57 per barrel. Today was a large swing day for Crude Oil Futures, they fell from 57 to 55 and recovered all the way back up to 57, showing very strong buying strength till the end of the day.

If the Crude Oil Futures start trading above $57.35, they can rapidly move up to $58, which is the next upside target. Given today’s strong pullback from $55 level, the technical target is now $59. However, if the Crude Oil Futures start trading below $57, they can rapidly go down to retest $56 level. There is a strong resistance at current level of $57. So traders should wait for upmove to take place first.

Today, the $55 level has re-established itself as a strong support. Therefore, our Crude Oil Futures trading strategy is to buy on corrections, while the futures are above $55 per barrel, for target $59 per barrel.

Because of the sharp fall from 58 to 55, we added long positions at 55.15 for target 56, which was a very reliable target for today itself, because a pullback till 56 was inevitable, and it happened within the morning. The upmove from 56 to 57 was part of a bigger upmove, which could not be seen in advance but our trading system kept us in the long positions till the end of the day, and we took profits at 56, 56.5 and 57.