Winter Storm Helps Crude Oil’s Value

The recent winter storm in the U.S has spurred on speculation within Crude Oil as it attained new highs and get the attention of traders.

U.S Crude Oil Exploring New Highs

Crude Oil continued to explore new highs on Tuesday and is trading over 63.00 U.S Dollars as it barrels higher.

A severe deep freeze from a prolonged winter storm has spurred speculators into a buying frenzy, as U.S Crude Oil has broken through resistance standing in its way.

Dynamic Rise in Value of Crude Oil

Interestingly, a mid-term chart highlights the recent buying in Crude Oil is not a short-term fancy. The commodity has been undertaking a dynamic rise in price the past few months.

Crude Oil’s rise in value yesterday brings into question, what its real support level is: and traders may consider a safe support level near 60.00 U.S Dollars a barrel.

Can U.S Crude Oil Sustain its Trend?

Obviously, the other consideration is if U.S Crude Oil’s trend can be sustained?  And this is a speculators game in which risk management is needed.

Temperatures are supposed to become warmer the next couple of days in New York and this could affect trading sentiment. However, Crude Oil may continue to deliver more upwards momentum before it faces headwinds.

In the short term, we believe Crude Oil may be positive. In the mid-term and long-term, we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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