Crude Oil: Fundamental Vs Technical
AvaTrade | Dec 31, 2014 04:30AM ET
Fundamentals
Crude oil is having another choppy session today and traders have booked their profit from yesterday’s gain. The bounce which we had yesterday was purely based on speculation and we maintain our view that the trend will continue towards the downside. However, we are not too far off from finding the bottom, as the U.S., which has produced the same amount of oil as Saudi Arabia during the last month, has reported that number of rigs are coming to halt -a scenario which will reduce supply and will balance the demand. The most important data for crude oil for this year is going to be the US crude inventory data which is due today, and if we do see that supply is shrinking, expect a bounce for crude and Brent.
Technicals
Crude oil is trading below the its downward trend line on a 30 month time frame and this confirms that the trend is towards the downside.
52.67- 53.02 Support zone
55.01-55.69 Resistance Zone
Disclosure and Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. Responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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