Tactics and Analysis, August 15, 2017 – Crude Oil Showing Signs of Downward Traction

U.S Crude Oil has seen sharp selling the past few trading sessions. After hitting short term highs a couple of weeks ago, the commodity has not been able to sustain its rally and seemingly is falling back into its well-known consolidated path.

Trend Falters for U.S. Crude Oil

U.S Crude Oil had enjoyed solid upwards momentum since the end of June. However, trading in the commodity the past week has shown signs of hitting resistance and faltering.

Crude Oil is now between 47.00 and 48.00 U.S Dollars a barrel and a speculative fight appears underway to establish consistent traction.

If U.S Crude Oil continues to decline and falls through support at 47.00 U.S Dollars a barrel it could signal further pressures will develop in the short-term.

Lack of Bullish Sentiment

Opec meetings are largely out of the way for the summer, and production issues remain unsettled and argumentative talking points among the large suppliers.

U.S Crude Oil was able to establish a speculative push upwards the past month and a half, but it appears its mid-term range could once again show a persistent lack of long standing bullish sentiment.

Sharp Selloff is a Clue

Crude Oil Inventories data will come from the States tomorrow. But last week’s results which showed a short fall in U.S inventories did not help the price of the commodity. In fact, U.S Crude Oil has sold off sharply the past few trading sessions.

A long-term chart shows the rather consistent consolidation U.S Crude Oil has followed. The selloff occurring now may be another symptom of Crude Oil’s general malaise.

In the short term, we believe the U.S Crude Oil may be negative. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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