BRENT CRUDE OIL (LCOc1) TALKING POINTS

  • Stronger USD hurts on crude oil.
  • Additional rigs could maintain draw back stress.
  • $90 mark key for weekly shut.

Trade Smarter – Sign up for the DailyFX Newsletter

Receive well timed and compelling market commentary from the DailyFX group

Subscribe to Newsletter

BRENT CRUDE OIL FUNDAMENTAL BACKDROP

Brent crude oil is buying and selling under $90 per barrel after a slew of world rate of interest hikes stemming from FOMC on Wednesday. Forward steering from the Federal Reserve factors to additional financial tightening to deal with inflation however provides to pressures on crude oil costs. The hawkish rhetoric additionally favors an elevated U.S. greenback and contemplating the historically inverse relationship between crude oil costs and the buck, Brent crude could also be weak to further draw back.

Foundational Trading Knowledge

Commodities Trading

Recommended by Warren Venketas

Start Course

Later immediately, we now have some key financial knowledge within the U.S. (see calendar under), whereas oil associated information comes through Baker Hughes rig rely knowledge which has proven a marked enhance final week (within the U.S., Canada and internationally) and something however a lower might depart crude oil costs depressed as provide forecasts enhance.

Introduction to Technical Analysis

Trade the News

Recommended by Warren Venketas

Start Course

ECONOMIC CALENDAR

Source: DailyFX Economic Calendar

Learn extra about Crude Oil Trading Strategies and Tips in our newly revamped Commodities Module!

TECHNICAL ANALYSIS

BRENT CRUDE (LCOc1) DAILY CHART -UNDATED

image2.png

Chart ready by Warren Venketas, IG

Daily Brent crude worth motion has yesterdays lengthy wick candle (yellow) indication following by to immediately with the September swing low in focus at 86.98. While it appears the psychological 90.00 degree has turned resistance, we have to look forward to the weekly shut to present us additional directional bias. A weekly shut under 90.00 might level to added worth weak point opening up the 85.00 assist zone.

Introduction to Technical Analysis

Candlestick Patterns

Recommended by Warren Venketas

Start Course

Key resistance ranges:

  • 92.90 (61.8% Fibonacci)
  • 20-day EMA (purple)
  • 90.00

Key assist ranges:

  • 86.98
  • 85.00

IG CLIENT SENTIMENT: BEARISH

IGCS exhibits retail merchants are NET LONG on crude oil, with 77% of merchants at the moment holding lengthy positions (as of this writing). At DailyFX we usually take a contrarian view to crowd sentiment leading to a short-term bearish bias.

Contact and observeWarrenon Twitter:@WVenketas

ingredient contained in the ingredient. This might be not what you meant to do!
Load your utility’s JavaScript bundle contained in the ingredient as a substitute.

LEAVE A REPLY

Please enter your comment!
Please enter your name here