In the last update post, it highlighted the next immediate support zone is between $42.20 and $43.20, as shown in the daily chart below. It was formed way back in November 2016.
Daily chart.
Last
3 days the price closed within the immediate support zone - taking a
"breath" before its next course of direction. Also mentioned in the last update post, the recent price action signals potential bearish trend for the mid-term period.
Weekly chart.
From the daily chart. the selling pressure on the current downtrend phase has been much higher than the Nov
2016 - formed the immediate support zone.
Will the current selling pressure pushes the price further downward ?
Or, Has it reaches the selling climax point ?
Lately, the news in the media still very negative.
Here is one the recent negative news.
According to analysts, the slide will continue, and oil prices could drop to levels they hadn't seen in more than a year.
"Oil is in a downtrend and risks trending into the $30's," Paul Ciana, a technical strategist at Bank of America Merrill Lynch, said in a note on Tuesday, as quoted by Business Insider.
More news, Bank Of America: Expect $30 Oil
Additional Info: S-Trader Trend Tracker support levels (Daily chart)
Resistance1 = $46.06
Resistance2 = $47.89
S-Trader Trend Tracker support levels (Weekly chart)
Resistance1 = $50.97
Resistance2 = $55.74
Note
: S-Trader indicators/tools is not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
2) www.oilprice.com
3) Business Insider
Outdated supertankers are becoming the storage units of choice for commodity traders looking to take maximum advantage of the new oil price crater, according to a new report by Reuters.
Brokers who spoke to Reuters said roughly 10 very large crude carriers (VLCCs) aged between 16 to 20 years have been employed as excess crude storage since the end of last month. Each unit holds 2 million barrels of oil.
Thirty other supertankers are parked in Singapore and Malaysia's Linggi, largely due to a market condition called contango - where oil futures are more expensive than an order for immediate delivery.
More news, Floating Storage For Oil Reaches 2017 High As Traders Employ Aging VLCCs
Source :
1) www.oilprice.com
JP Morgan slashed its 2018 WTI forecast by US$11—from US$53.50 to US$42. The price projection for Brent was also axed, by US$10, from US$55.50 to US$45.
The US shale-vs-OPEC-cuts tale has been the predominant theme in oil markets this year, and like the cartel's output cut, it will be rolling over into next year as well.
Major banks, the same that at the time of the initial OPEC deal were seeing the markets tightening and glut eliminated as soon as the second or third quarter this year, have started slashing their oil price forecasts for this year and next, as the 6-month OPEC deal failed to rebalance the markets and cuts were extended into March 2018.
US shale production is expected to continue growing through this year and into next year. Meanwhile JP Morgan sees OPEC's extension deal as having no exit strategy, with the cartel not communicating what its end game is.
1) www.oilprice.com
Presently, the trend formation of Lower Low and Lower High is still intact. This shows the bear very much in control.
Despite the drop in price, the number of active oil and gas rigs in US still increased by 11 this week - making it 21 weeks of consecutive gains - the longest growth streak since at least 1987, which is the earliest date that Baker Hughes data is available.
More news, U.S. Rig Count Continues Its Ascent Unabated
Daily chart of West Texas Intermediate (WTI) Crude Oil.
In the previous post on WTI Crude Oil, it raised a question whether the present trend formation (price decline) send the oil price to much lower level around $39 to $42 range.
It all depends on the following support levels identified from the daily chart shown above , able to halt the price decline.
1) Immediate support zone is between $43.76 and $45.51.
2) Trendline (drawn on the chart above).
3) S-Trader Trend Tracker Support level (Weekly Chart as shown below).
Support = $44.81
Weekly Chart.
Based on the weekly chart, if the price dropped and closed below the Trend Tracker Support level ($44.81) with relatively high or very high volume traded - it signals potential bearish trend for the mid-term period.
Additional Info:
S-Trader Trend Tracker support levels (Daily chart)
Resistance1 = $51.64
Resistance2 = $49.46
S-Trader Trend Tracker support levels (Weekly chart)
Resistance = $54.19
Support = $44.81
Note
: S-Trader indicators/tools is not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
2) www.oilprice.com
The Energy Information Administration poured ice cold water on the budding hope that inventory levels in the world's largest oil consumer may be normalizing, by reporting a 3.3 million barrel build in commercial stockpiles for the week to
June 2.
That happened a day after the API reported a draw of 4.62 million barrels, with analysts expecting the API to report a draw of 3.5 million barrels for last week - but even with expectations for another draw in inventories, prices failed to show any significant enthusiasm, jumping briefly before sagging down again on Tuesday. EIA's figures will likely strengthen the downward trend.
More news, Oil Prices Collapse As The EIA Reports Unexpected Inventory Build
Daily chart of West Texas Intermediate (WTI) Crude Oil.
The price broke the support zone and S-Trader Trend Tracker with relatively high volume (1,123,281) close to the amount of volume selldown on 25 May.
In the post dated on 26 May, it highlighted that the price trend is forming a series of Lower Low and Lower High. With the latest price action, the trend formation still intact.
Bear very much in control.
Is the price heading towards $39-$42 range ?
The next immediate support zone is between $43.76 and $45.51.
S-Trader Trend Tracker support levels (Daily chart)
Resistance1 = $52.68
Resistance2 = $50.07
S-Trader Trend Tracker support levels (Weekly chart)
Resistance = $53.85
Support = $44.81
Note
: S-Trader indicators/tools is not part of Metastock software package.
It is our proprietary system/tools. If you have any further inquiries,
please feel free to Contact Us.
Source :
1) Metastock
2) www.oilprice.com
