Crude Oil Gives Back Gains After Inventory Data
MarketPulse | Feb 15, 2024 08:55AM ET
- EIA reported inventories rose by 12 million barrels last week
- Volatility remains amid uncertainty
- Inverse head and shoulders forms
Oil prices remain very volatile and last week’s unexpected and substantial inventory build, reported by EIA, further added to that.
The price fell sharply after the data and continued earlier today before recouping those losses to trade flat on the session.
It’s understandable why oil prices are so volatile, there’s tremendous uncertainty around the Middle East, the economy, and interest rates which is generating these large moves.
There has been more of an upside bias of late but broadly speaking the price remains at reasonable levels that won’t be a concern from an inflationary standpoint.
Get The News You Want
Inverse Head and Shoulders Formed?/h2
Brent crude has been gradually recovering since mid-December and appears to have formed an inverse head and shoulders in the process.
Source – OANDA
The neckline falls around $84 and hasn’t been broken so the formation is still incomplete. A break of it though could be very bullish and may offer possible price projections based on the size of the inverse head and shoulders formation.
Of course, nothing is guaranteed but it’s clear that $84 is a significant resistance level and one that’s been reinforced multiple times. The higher lows since mid-December also suggest bullish momentum is gradually building.
Original Post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.