Oil has continued to move higher as inventories were down in the last Crude Oil Inventory report. The next data release (10/30) is being forecasted at 729 thousand barrels. Oil prices have been sporadic this month between the Saudi Arabian attack and the Iranian oil tanker attack, throwing analysts off this month.
On the technical analysis front, Oil saw a +5.30 rally last week, breaking higher than our expectations. Last Thursday (10/23) seeing the biggest gainer at +2.82%. The week closed at $56.58 a barrel showing market strength.
We are tracking on the Daily chart a Bearish Rising Wedge Pattern, however, on 4 Hour and 1 Hour time frames, the bullish momentum is still playing out and has not subsided enough for a bearish breakout.
In addition, we still have strong support at the $50.00 to $52.00 price range. According to the CFTC’s Commitment of Traders Report (COT) Oil producers are long 96% more than they have been in the last 5 years. This indicates oil makers are hedging against higher prices.
THE PLAY: This week we have a Hold on Oil as we are ranging higher.
On the technical analysis front, Oil saw a +5.30 rally last week, breaking higher than our expectations. Last Thursday (10/23) seeing the biggest gainer at +2.82%. The week closed at $56.58 a barrel showing market strength.
We are tracking on the Daily chart a Bearish Rising Wedge Pattern, however, on 4 Hour and 1 Hour time frames, the bullish momentum is still playing out and has not subsided enough for a bearish breakout.
In addition, we still have strong support at the $50.00 to $52.00 price range. According to the CFTC’s Commitment of Traders Report (COT) Oil producers are long 96% more than they have been in the last 5 years. This indicates oil makers are hedging against higher prices.
THE PLAY: This week we have a Hold on Oil as we are ranging higher.