Weekly analysis:
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Technical analysis: crude continues to be range bound but this case won’t stay for long. Its already been a month crude is trading in a range which is getting tight now. Have to wait and only monitor to see which way it will break to. $41.70 is the area to observe. If crude maintains to stay above this than we will see prices to increase further up, it’s anyway a bullish market at the moment. However, if $41.70 fails to hold than prices might drop. Quite frankly unless until the market knocks $37 out momentum still remains bullish. We can trade within this range $43.50 to $38.53 keeping $41.01 as our target to aim for a short or a long position! Till the range breaks.
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Bulls: market did reach $43.50 last week which formed a new high. This week might also aim for the next high at $44.70 handle, have to wait for the highest high to break.
Bears: last week it did look like a bearish market and some what a shooting star has been formed on the D1 chart on Thursday. Might be an indication for further price drop.
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Fundamental analysis: there are many reasons as to why there is a tussle between buyers and sellers.
1.Strong US dollar
2. U.S. energy companies cut the number of oil and natural gas rigs this week to a record low for a 14th week
3.Growing cases of corona virus still makes demand for crude oil doubtful
4. Price may deteriorate further if U.S. and China engage in a damaging trade and sanctions war.
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These all factors are causing crude to be range bound. Once we do breakout to one side than things will be more clear. For time being we have nothing much to do rather than finding value within this range.
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Recommendations will follow as and when we will see an opportunity in the market.
.
Technical analysis: crude continues to be range bound but this case won’t stay for long. Its already been a month crude is trading in a range which is getting tight now. Have to wait and only monitor to see which way it will break to. $41.70 is the area to observe. If crude maintains to stay above this than we will see prices to increase further up, it’s anyway a bullish market at the moment. However, if $41.70 fails to hold than prices might drop. Quite frankly unless until the market knocks $37 out momentum still remains bullish. We can trade within this range $43.50 to $38.53 keeping $41.01 as our target to aim for a short or a long position! Till the range breaks.
.
Bulls: market did reach $43.50 last week which formed a new high. This week might also aim for the next high at $44.70 handle, have to wait for the highest high to break.
Bears: last week it did look like a bearish market and some what a shooting star has been formed on the D1 chart on Thursday. Might be an indication for further price drop.
.
Fundamental analysis: there are many reasons as to why there is a tussle between buyers and sellers.
1.Strong US dollar
2. U.S. energy companies cut the number of oil and natural gas rigs this week to a record low for a 14th week
3.Growing cases of corona virus still makes demand for crude oil doubtful
4. Price may deteriorate further if U.S. and China engage in a damaging trade and sanctions war.
.
These all factors are causing crude to be range bound. Once we do breakout to one side than things will be more clear. For time being we have nothing much to do rather than finding value within this range.
.
Recommendations will follow as and when we will see an opportunity in the market.