- WTI is extending its recovery from the $54.74bbls lows, currently trading at 56.50 from a low of $56.21bbls and to a high of $56.56bbls.
- The price has proven its fragility at the trend-line support est.11th Feb and bulls tread with caution.
Crude oil prices ended the week on a sour note, but have at least made a recovery with a strong rejection from the bulls no the downside. Prices have been falling sharply on concerns of weak demand after weak economic data.
Analysts at ANZ Bank explained that coupled with the US monthly jobs report showing hiring at its weakest in more than a year with a poor global growth outlook exacerbated by a slump in Chinese exports whereby the 20.7% fall in exports was the biggest fall since February 2016, has raised concerns about the impact that the trade tensions are having on the global economy:
"These issues outweighed the impact of data showing a slowdown in US drilling. The number of rigs drilling for oil in the US fell by nine to 834, according to Baker Hughes data. This is the third straight week of declines. A key oil services company warned that they expect cuts to drilling activity after a number of oil producers trimmed their spending outlooks for 2019."
WTI levels
The price has proven its fragility at the trend line support est.11th Feb and the support is now wider, shifted to the lows on Friday located at 54.55 - This is where the Kijun-sen can be located on the daily charts. If the 55.56 lows seen at the start of this month are broken again, bears will look for a run back towards the 50 handle with the confluence of the 23.6% Fibo target at 50.20. Bulls can look to a target of the recent tops of 57.17 (78.6% Fibo) ahead of the 57.85/93 double-tops. While the price is recovering, bulls need to get and hold above the 50% retracement of the March decline at 56.20).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD clings to recovery gains below 0.6550 on weaker USD, upbeat mood
AUD/USD holds sizeable gains below 0.6550 in the Asian session on Monday. A sharp pullback in the US bond yields prompts some US Dollar profit-taking after US President-elect Trump named Scott Bessent as Treasury Chief. Moreover, the upbeat market mood supports the risk-sensitive Aussie.
USD/JPY remains heavy below 154.00 as USD weakens with Treasury yields
USD/JPY remains under intense selling pressure below 154.00 in the Asian session on Monday. Retreating US Treasury bond yields drags the US Dollar away from a two-year top high and drives flows towards the lower-yielding Japanese Yen, though the BoJ uncertainty could limit losses for the pair.
Gold: Is the tide turning in favor of XAU/USD sellers?
After witnessing intense volatility in Monday's opening hour, Gold's price is licking its wounds near $2,700. The bright metal enjoyed good two-way trades before sellers returned to the game after five straight days.
Elections, inflation, and the bond market
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.