U.S Crude Oil continued its upturn on Wednesday as traders responded to a shortfall in U.S inventories with renewed buying power.
After stumbling since late January, Crude Oil may see speculative bullish action developing.
While forex proves a tough beast to tame, commodity markets have provided more tranquil surroundings for bullish speculators. U.S Crude Oil came off lows yesterday and is trading above 61.00 U.S Dollars a barrel.
Support for Crude Oil appears to be around the 58.50 juncture, while resistance appears to be about 63.00 U.S Dollars a barrel.
U.S Crude Oil supply numbers were published yesterday and inventories were 1 million barrels below expectations. This showed that demand for the commodity is strong, meaning even as energy producers have ramped up production, demand appears to be outpacing supply in the short-term.
Crude Oil has had a solid mid-term and long-term trend upwards, and although it has met headwinds since late January, the commodity may be ready for bullish sentiment to renew.
In the short term, we believe U.S Crude Oil may be positive. The mid-term and Long term we are unbiased.
Yaron Mazor is a senior analyst at SuperTraderTV.
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Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.