rounded corner
rounded corner
top border

Crude Oil Wrap Up


Bookmark and Share

December Crude Oil sold off on Thursday, October 20, 2016, as some profit taking by longs liquidating on a stronger than expected US dollar and Nigeria cutting its official price for Crude Oil. Nigeria is desperate to increase its sales of crude oil and is cutting prices to accomplish this goal. Plus, Russias state oil company Rosnefts CEO said they have the potential to increase oil production by 4 million b/d if needed. If they have this capability it will make any production agreement by OPEC a worthless venture, in my opinion. OPEC and Russia have been doing a little dance as they try to forge some sort of agreement to curb production. Russia doesnt trust OPEC to comply with any agreement and OPEC doesnt really want to cut production (they want other producers to cut production) so Russia seems to be forcing them to admit this or to actually come up with a firm commitment to freeze/ cut production. I dont think OPEC can come up with a firm commitment to freeze/ cut. They want the perception, the potential and not the reality of a freeze/ cut. They want to do the talk but not the walk. Too many OPEC nations need to get production levels higher than they are currently are at for this to work. The best way to end the glut is to improve demand. With the global economy slowing down that will be difficult to accomplish. Crude Oil couldnt crack trendline resistance (51.98) and settled below trendline support (50.68) at 50.63. Price actually tested the 13 DMA (50.41) and held. The low was at 50.44. If Crude oil breaks down from here, it could test 50.00 then 49.36. The 21 DMA is at 48.96 and could be a strong support level. To get the rally going again Crude Oil should hold the 13 DMA and head back to trendline resistance up at 51.96. A close above here could propel Crude Oil towards the $55 mark.

High 51.83

Low 50.44

Last 50.61

Daily Pivots for 10/21/16:

R2

52.35

R1

51.48

PIVOT

50.96

S1

50.09

S2

49.57


If you are interested in a Managed Futures program for Crude Oil, check out this offering from Walsh Trading:

Walsh Asset Management Introduces Bluenose Capital

For those interested I hold a weekly livestock webinar on Friday, October 21 at 2:30pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon signup.

Sign Up Now

Ben DiCostanzo

Senior Market Strategist

Walsh Trading, Inc.

Direct: 312.957.4163

888.391.7894

Fax: 312.256.0109

bdicostanzo@walshtrading.com

www.walshtrading.com

RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.



Recent articles from this author



About the author


Ben DiCostanzo
Senior Market Strategist
Walsh Trading

I began my career in the Securities industry working as a runner on the floor of the New York Stock Exchange while I attended Pace University. I then started working for Salomon Brothers in their Government Bond Trading arena. After graduating from Pace University with a degree in Accounting, I transferred to Chicago and became a member of the Chicago Mercantile Exchange utilizing my experience to execute trades and manage risk for institutional clients as a broker for Salomon Brothers on the trading floor. I then embarked to trade for my own account in the stock indices pits as a local before moving off the floor to aid and assist individual clients in their trading endeavors. I now work at Walsh Trading holding a series 3 broker’s license whose duties include being the firm’s Chief Market technician.

I understand that every client's needs are different, and I pride myself in tailoring my service to each client's unique circumstances and needs. Individual client experience, risk tolerance, and capital all play a role in how I approach the markets. I am involved in all markets using technical analysis to find opportunities. My approach is driven by the principles of capital preservation.

My trading philosophy is that if you can recognize and manage the risk, you have a better chance to be successful in trading. I advise clients to always use stops as money management in my opinion is the most important ingredient in trading commodities.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2018 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy