July Crude Oil made a new high during the night session for Thursday, June 9, 2016 reaching 51.67 before a dark Mario Draghi speech on the European economy sent the US Dollar higher and motivated traders to take some profits. This sent price to the lows of the day at 50.23 as US traders took over the day’s trade. Thursday’s US session saw a tight range as price traded between the low and 50.87. Mr. Draghi’s comments took precedence over the Niger Delta Avengers rejection of the Nigerian government’s offer of peace talks and another militant group making demands to the government. This rejection of peace talks will continue to limit supply from Nigeria. There were Today’s trade led to the formation of a bearish outside candle and could lead to more profit taking on Friday.
If Crude Oil breaks below Thursday’s low a test of the trendline that has held the selling in check could be tested. The trendline lies at 49.87 and a piercing of this support could lead to a test of the 13 DMA at 49.70.
I propose buying Crude on a test of the 13DMA, expecting price to rebound from there and try to close the week on a strong note. Place your stops according to your account size and risk tolerance.
High 51.67
Low 50.23
Last 50.46
Daily Pivots for 6/10/16:
|
R2 |
52.23 |
|
R1 |
51.34 |
|
PIVOT |
50.79 |
|
S1 |
49.90 |
|
S2 |
49.35 |
|
|
For those interested I hold a weekly livestock webinar on Friday, June 10, at 2:00pm. It is free for anyone who wants to sign up and the link for sign up is below. If you cannot attend live a recording will be sent to your email upon signup.
