Crude Oil (CL) Forecast

The futures point to a bearish open for the European majors. A lack of data will leave the majors in the hands of the news wires and COVID-19…

Crude oil markets dipped slightly on Tuesday but found support again to turn around and pressed the resistance barrier that we have been fighting all along.

Oil continues to trade above the key $40 level but fails to get above the next resistance level at $41.50.

The Commitments of Traders report covering positions held and changes made by money managers in the week to June 30. A week that despite mixed price performances saw funds buying 18 out of the 24 major commodity futures tracked in this. The top five included corn, natural gas, soybeans, Brent

Data from the American Petroleum Institute industry group at 20:30 GMT on Tuesday is expected to show a 100,000 barrel rise in gasoline stockpiles.

Another record high for the Nasdaq helped push US stocks for their fifth successive day of gains, while the rally for Chinese stocks continued in Asia with the Chinese CSI300 hitting a new five year high as the recent two-week rally extended to over 15%.

Stock markets are set to finish firmly higher today as the bullish sentiment from China spilled over to the west.

The crude oil markets rallied a bit against the backdrop of a positive Monday but find quite a bit of noise just above that they need to deal with.

Oil continues its upside move and heads towards the test of the next resistance level at $41.50.

Today’s session begins with the market up six days from its last main bottom. This means we should start watching for signs of a top.

A new daily high number of contagions globally has been reported, but the risk-appetites have been stoked. Chinese stocks have been on a tear.

In order to sustain the rally, inventories are going to have to continue to drop and people are going to have to continue to work, plain and simple.

EquitiesUS500 – Neutral in the ST, although a break of 3161 suggests a resuming of the bull trend and longs for 3200 and 3230 seem compelling. The 200-day MA (3024) contains the sell-off, so until price can close through here then the stance is neutral. NAS100 remains a trend-followers dream

The consolidative/corrective phase in the capital markets appears to be drawing to a close.

Trader reaction to the minor pivot at $39.36 and the major Fibonacci level at $41.56 will set the near-term tone.

Risk-appetites and, by implication, the capital markets entered a new phase around June 5 when the US reported an unexpectedly strong jump in the May non-farm payrolls.

Crude oil prices dropped below $43 at the end of this week as growing concerns on the resurgence of COVID-19 cases in major economies around the world strengthened concerns that global energy demand growth could freeze.

Crude oil markets rallied during the week as we headed towards the Independence Day holiday.

Crude oil markets have done little on Friday, as we are pressing previous resistance. It was a holiday in the United States and liquidity was very low.

Oil swings between gains and losses near the key resistance level.