Crude Oil (April)
Yesterday’s close: Settled at 56.22, down 0.34
Fundamentals: Crude Oil is playing out exactly as we have been expecting, more technical than ever. Price action is contained within major three-star support and resistance; detailed in the ‘Technical’ section below. Yesterday’s EIA inventory report was certainly headline bearish, but when you diver deeper into the data, not so much. Yes, Crude Oil inventories grew by 7.069 mb and those at Cushing, Oklahoma by 873,000. However, much of this was offset by a draw in the products combined for 6.62 mb. Furthermore, we did see imports bounce back firmly by over 1 million per day which contributed to the bloating in Crude. Furthermore, there was no increase in production from the lower 48 states. Overall, Crude is bouncing back this morning as it remains rangebound.
Technicals: Our major three-star resistance comes in at 57.05-57.35 and Crude Oil has been unable to close out above here, although it has traded as high as 57.88; a close above the three-star should signal a breakout. Yesterday, price action could not pierce though and close below major three-star support at 55.44-55.75; a move back below 56.43 will again give the bears a shot. Ultimately though, this market is rangebound and traders can continue to capitalize on such.
Bias: Neutral
Resistance: 57.05-57.35***, 57.69-57.88*, 58.16-58.35**, 59.63***
Pivot: 56.43
Support: 55.44-55.75***, 54.71-54.76***, 53.51-53.98***
If you have any questions about the commodity futures and options markets, trading or opening an account please let us know!
For more information please contact DAW Trading at brokersedge@dawtradingdiv.com or at 877-329-0006 and visit us at https://dawtradingdiv.com/brokers-edge/
Disclaimer:
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. DAW Trading (“DAW”) uses various outside sources for research material regarding futures and options on futures trading therefore the views and opinions expressed in this letter may not necessarily reflect the view of DAW or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to DAW.