Crude Oil Price Analysis for March 7, 2017

Crude oil prices continue to trade sideways, hovering just below resistance near the 10-day moving average at 53.74. Hedge fund traders substantially cut long positions and added to short positions according to the most recent commitment of trader’s report released for the date ending February 28, 2017.   Support on crude oil prices is seen near the February lows at 51.86.  Momentum is neutral as the RSI (relative strength index) is printing a reading of 46, which is in the middle of the neutral range and reflects consolidation.

Managed Money is Long Futures and Options

Per the CFTC, managed money reduced long position in futures and options by 17K contracts while adding 9.3K contracts to short positions.  Those who are long contracts in the managed money space outnumber short contracts by 387K contracts which is close to an all-time high.  Traders await this Wednesday’s inventory report from the Energy Information Administration.