🤔 NVDA Q126 earnings report - is now the right time to buy?Ask WarrenAI

WTI Crude Seeking More Bearish Targets With 107.0 Broken

Published 09/17/2013, 07:09 AM

Hourly Chart
West Texas Crude Hourly Chart
Crude Oil continued yesterday's downtrend after yet more QE Taper fears emerged during Monday’s US session. Prices managed to break the 107.0 support, but the bearish impetus wasn’t continued during the Asian session, with prices actually trading slightly higher during early European trade. However, bulls hopping for a stronger correction towards 107.0 may be disappointed, as prices do not seem to be able to break above the soft 106.7 level.

Therefore, do not be surprised to see prices heading lower from here before 107.0 is properly tested. Stochastic readings--which are still pointing strongly higher--may also be able to turn sharply lower since the latest peak has been lower than the one seen on Monday’s opening gap.

Nonetheless, the prudent trader may want to wait for further confirmation as there is no evidence that a bearish move is happening right now. Bears should preferably trade below today’s swing low of 106.15 which will likely coincide with a Stoch curve reversal for a stronger bearish conviction. This may lead us closer towards 103.0, but it is reasonable to think that prices will most likely experience another, stronger bullish pullback en route. Consider that there isn’t much space for a continuous bearish cycle based on current stoch levels.

Wednesday’s FOMC monetary policy announcement may throw yet another spanner in the works. Considering that Crude Oil has been bearish even when risk appetite is strong, an evaporation of risk appetite should the Fed announce a tapering move will most likely send Crude down even further.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Even if the Fed doesn’t announce a tapering measure this time around, any pop higher may be only temporary, and that will be an even more damning bearish verdict for price outlook, similar to what's happening with Gold. This pullback will provide good recovery space to prevent any sharp bullish retracement due to the over-extension from bears and at the same time present better prices for current underlying bears to short into.

As such, the subsequent bearish thrust may be stronger and longer lasting as compared to a direct move to 103.0 from here, with the latter having a higher chance to break the 103.0 mark and send price back below the 100.0 region.

Original post

Which stock should you buy in your very next trade?

AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?

Unlock ProPicks AI

Latest comments

Peter dikeakosSep 17, 2013, 21:36
Your chart look, so precise and s i m p l e' How do you do it ?
Loading next article…
Risk Disclosure: 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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.