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:

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  • 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 mboutros@dailyfx.com or Click Here to be combined to his email placement list.

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