Crude Oil Prices Aim to Break 7-Month Down Trend. Will They?

Talking Points:

  • Crude oil prices arise for fifth day, plea 7-month trend resistance
  • Gold prices decrease following services ISM, Fed Beige Book surveys
  • ECB rate decision, EIA wanton oil register information now in a spotlight

Crude oil prices continued to pull upward, scoring a fifth uninterrupted day of gains. Support from rebuilding enlightening ability in a arise of Hurricane Harvey was helped along by comments from Russian Energy Minister Alexander Novakand weekly register upsurge statistics from API.

Novak pronounced an OPEC-led prolongation cut intrigue might be extended if a marketplace hasn’t offset by Apr 2018. Meanwhile, API pronounced stockpiles combined 2.79 million barrels final week, a smaller boost than a 3.67 million build approaching to seem in central EIA statistics due today.

As noted previously however, gains might not be lasting. EIA information set substantially needs to uncover an even-smaller storage influx than a API outcome to offer prices a durability boost. Meanwhile, Libya has restarted a Shahara oil margin – a largest – and US appetite infrastructure is during risk again, this time from Hurricane Irma.

Gold prices incited reduce as a US Dollar and benchmark Treasury bond yields rebounded in tandem, undermining a interest of non-interest-bearing and anti-fiat assets. The pierce followed ISM information display service-sector activity enlargement accelerated and a comparatively sanguinary Fed Beige Book survey.

The spotlight now turns to a process proclamation from a European Central Bank. The yellow steel might tumble serve if Mario Draghi and association vigilance that a circuitous down – or “tapering” – of a QE item squeeze bid is around a corner. The deficiency of such superintendence might produce a conflicting result.

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GOLD TECHNICAL ANALYSISGold prices put in a Bearish Engulfing candlestick pattern, hinting a spin reduce might be ahead. A pierce subsequent resistance-turned-support during 1326.38 – a 23.6% Fibonacci enlargement – sees a subsequent downside separator noted by a 14.6% turn during 1315.49. Alternatively, a pull above a 38.2% Fib during 1344.04 exposes a 50% enlargement during 1358.32.

Crude Oil Prices Aim to Break 7-Month Down Trend. Will They?

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are staid to exam trend line insurgency that has capped a upside for 7 months, a separator reinforced by a 50% Fibonacci enlargement during 49.73. A daily tighten above this separator would primarily display a 61.8% turn during 50.71. Alternatively, a pierce behind subsequent a 38.2% Fib during 48.75 targets a 23.6% enlargement during 47.53 anew.

Crude Oil Prices Aim to Break 7-Month Down Trend. Will They?

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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