Crude Oil Futures Analysis- 13Jan2020

Fundamental Analysis: Crude Oil futures have been correcting ever since they hit a high of $64.50 per barrel at the height of USA-Iran tension, and with calm returning back to the Middle East, the Crude Oil prices have been correcting daily, because supply is coming up constantly in the USA and the global demand is still the same, and not really rising faster than supply. So it’s also in the interest of Crude Oil producers to keep the Crude Oil prices under control without unstable price spirals. $50-60 looks like a price band that can provide stable price zone in the near term.

Technical Analysis: Crude Oil futures are giving Sell signal on various indicators on various near term time frames. Traders can sell with $61 per barrel as Stop loss, because if the current correction is real, then 61 should not come in the first place. Most Stop Losses on Sell trades will be at 60, so that is not suitable as a Stop loss, it should be a bit higher to avoid being caught in a unsustainable price spike due to short covering.

[Bonus Trade] Sell Crude Oil at 59 for Target 55 with Stop loss 61.

Crude Oil Support & Resistance Table – 13 Jan 2020

Support & ResistanceLevelExplanation
Resistance 260.630Daily R2
Resistance 159.971Daily R1
Support 158.269Daily S1
Support 257.694Daily S2

Crude Oil Indicator Table – 13 Jan 2020

IndicatorSignal
SMA 20Sell
SMA 50Sell
SMA 100Sell
MACD( 12;26;9)Sell
RSI (14)Sell
Stochastic ( 9;6;3)Sell

Crude Oil Indicator/ Timeframe Table – 13 Jan 2020

Indicator / PeriodDay – SellWeek – SellMonth – Buy
MACD( 12;26;9)SellBuyBuy
RSI (14)SellSellBuy
SMA 20SellSellBuy

Crude Oil Futures Analysis- 02Oct2019

Crude Oil Futures (WTI) are at $53.94 per barrel, and they have a strong support between 53-54 levels. Interesting fact is that in last 17 trading sessions, the crude oil futures have done a green closing on only one day, and that the was day of the massive spike up after the supply disruption at Saudi Aramco refinery.

WTI Crude Oil Price Outlook:

  • Crude Oil Futures should retest 56 at least once in Oct 2019. A retest of 57 is also possible, but there will be constant selling pressure on each upmove.
  • Our crude oil trading strategy of buying on corrections and selling on rallies has restarted this week, and we have bought at 54, for target 56 and stop loss 51.
  • More buying can be done between 53-54 levels, because crude oil should find support at current levels for a pullback rally towards 56.
  • Please Note: In case of any new supply disruptions, we will see another spike towards 59-60 levels.