Crude oil prices were on a tear, peaking at $42.69, and up more than 9% on the day. The move over $41.50 reportedly brought fund buyers into the market,
Crude oil prices were on a tear, peaking at $42.69, and up more than 9% on the day. The move over $41.50 reportedly brought fund buyers into the market, though it remains unclear whether shorts were being covered, or fresh longs were being initiated. Some talk that China markets are perhaps putting in a bottom has supported through the session.
Prices ran into resistance near the 20-day moving average at $42.72, which coincides with the March lows. Momentum on crude oil prices have turned positive with the MACD (moving average convergence divergence) index generating a buy signal. This occurs as the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread. The index moved from negative to positive territory confirming the buy signal.
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.