Crude fell to new six-plus year lows of $43.39 in early Asian trade, following weak Chinese trade data released over the weekend. The contract rallied
Crude fell to new six-plus year lows of $43.39 in early Asian trade, following weak Chinese trade data released over the weekend. The contract rallied through the U.S. trading session settling near its high. With a September Fed rate hike a likelihood, further dollar strength seen in the cards, and an over supplied oil market very clear, short covering rallies will just give traders better levels to sell into.
First resistance is seen at Friday’s highs at $45.16 and then the breakdown level at $46.78. The 20-day moving average also loons at $48.09. Momentum remains negative but the trajectory of the MACD has flattened. The rate of change continues to show a negative reading reflecting very little historical volatility.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.
