It was another positive day for crude oil which continued its recent bullish momentum, moving firmly through the $60 per barrel price point to close at $60.40 per barrel on the daily oil chart. This positive sentiment for oil has continued on Globex overnight and into the morning session with the oil prices trading higher again at $61.87 per barrel at the time of writing.
Yesterday’s move higher was accompanied with solid volume and confirming the price action which closed with a wide spread up candle, and holding the platform of support which is now firmly in place below at $58.50, and which has provided the springboard for the move higher. Whilst the technical picture remains bullish, the fundamentals too are now helping to take oil prices higher, with weakness in the US dollar, a slowdown in output from Libya coupled with news that Saudi Arabia has increased its official selling price. These factors are all providing additional momentum.
Today sees the release of the latest oil inventory stats from the Texas Cushing hub, with the forecast for another build, albeit modest by recent standards. Last week saw the downwards trend in oversupply continue, and should we see this again later today, then oil is likely to move higher building in the double bottom now in place on the weekly chart.
By Anna Coulling
Charts are from NinjaTrader and the trading indicators from Quantum Trading.
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