Crude Prices Eye Initial Support Following Break of 2017 Range

Talking Points

  • Crude prices mangle yearly opening operation – pivotal support connection in focus
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)

Crude Weekly

Crude Oil Weekly Chart

Technical Outlook: Last month we highlighted a well-defined yearly opening-range in wanton with a risk weighted to a downside as prices pulpy a infamous long-term insurgency threshold during 54.74-55. We also note that “large speculators continue to reason record prolonged positioning given Jan and with a marketplace so heavily weighted, a chasm could be rather vicious.” Crude prices are down for a fifth uninterrupted event now (-7.9% on a week) with a pullback now entrance initial support during 47.60-48.70– a turn defined by numerous prolonged short-term Fibonacci considerations as good as 200-day 52-week moving averages. Bottom-line, this is a turn to kick to trigger a successive large leg down in prices- shorts are exposed into this segment near-term.

Crude Daily

Crude Oil Daily Chart

Notes: A closer demeanour during a daily draft highlights a weekly low induction only pips off a 50% retracement of a Nov allege with slope support fluctuating off a Apr lows entrance in only lower. Look for a greeting there. Interim insurgency stands during 50.69 with a concentration reduce underling 51.64 (bearish invalidation). A mangle reduce targets successive support objectives during a 61.8% retracement during 47.16 and simple trendline support fluctuating off a Apr low, now ~46.30s.

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

Other Setups in Play:

  • EUR/USD: Post-ECB Recovery to Face U.S. NFP
  • Nikkei 225 Battle Lines Drawn- Key Levels to Know
  • Weekly Strategy Webinar: USD Volatility in Focus
  • DXY Do or Die – Trendline Break to Seal a Fate
  • USD/JPY Decision Time- 112.30 Line in a Sand

—Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex hit him during or Click Here to be combined to his email placement list.

About author

Turnbull’s budding bromance with Trump

Video Image PM Malcolm Turnbull has spoken to US President-elect Donald Trump and congratulated him on his win. Australia’s Prime Minister Malcolm Turnbull, with Christopher ...