Good Morning Traders!
WTI is ready to fill the gap both fundamentally and technically.
+Technicals:
Yesterday's close below Monday's lows
RSI showed divergences at peaks
Today we are under the daily pivot point
Yesterday's drop was very quick with massive volume
Gap is not filled
+Fundamentals:
Bad API report
Faster than expected output recovery
Slowing world economy - lower oil demand
Recession fears
Trade-war(s)
Except this short shock there is oversupply on market and inventories
Around 60 $ US increases its pala oil production
There is a chance of easing sanctions with Iran in longer term
Trump does not want war and higher oil prices,especially before elections
Higher oil prices generating higher inflation, which undermine central banks rate cut plans
Seasonality - Q4 is usually a decreasing period of oil prices
-Cons:
Further attacks
Fears pricing in
Aramco's IPO - better higher prices
If rate cuts and QE helps (?) oil can increase again
All in all, short term is bearish now, longer term is opened for me.
Have a nice & profitable day,
Adam
WTI is ready to fill the gap both fundamentally and technically.
+Technicals:
Yesterday's close below Monday's lows
RSI showed divergences at peaks
Today we are under the daily pivot point
Yesterday's drop was very quick with massive volume
Gap is not filled
+Fundamentals:
Bad API report
Faster than expected output recovery
Slowing world economy - lower oil demand
Recession fears
Trade-war(s)
Except this short shock there is oversupply on market and inventories
Around 60 $ US increases its pala oil production
There is a chance of easing sanctions with Iran in longer term
Trump does not want war and higher oil prices,especially before elections
Higher oil prices generating higher inflation, which undermine central banks rate cut plans
Seasonality - Q4 is usually a decreasing period of oil prices
-Cons:
Further attacks
Fears pricing in
Aramco's IPO - better higher prices
If rate cuts and QE helps (?) oil can increase again
All in all, short term is bearish now, longer term is opened for me.
Have a nice & profitable day,
Adam