Technical Momentum Weakens
Crude Oil futures have stalled after rising in 2024 after trading at the upper price band of $88/barrel and lower price band of $84/barrel. The technical perspective shows momentum studies correcting from overbought territories, with the 9-day moving average stalling above 18-day. DMI + is narrowing in on DMI -, indicating that the market is consolidating, while the Average True Range firms to $1.66 per day.
EIA Inventories Rise
EIA Inventory tightness has reversed recently, indicating a more relaxed supply picture. Current EIA inventories are 457 million barrels, compared to the five-year average of 466 million barrels for this period.
Cushing stocks in the Mid-West have also narrowed recently, showing 33 million barrels in inventory versus a five-year average of 40 million barrels.
Recent API Data has shown another build of 4 million barrels.
An Expanding Economic Tailwind
The U.S. economy continues to expand in 2024, driven by the high probability of a soft landing, fueling investor sentiment. Geopolitical Tension also plays a wildcard with the possibility of a widening Middle-Eastern conflict.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Crude Oil futures have stalled after rising in 2024 after trading at the upper price band of $88/barrel and lower price band of $84/barrel. The technical perspective shows momentum studies correcting from overbought territories, with the 9-day moving average stalling above 18-day. DMI + is narrowing in on DMI -, indicating that the market is consolidating, while the Average True Range firms to $1.66 per day.
EIA Inventories Rise
EIA Inventory tightness has reversed recently, indicating a more relaxed supply picture. Current EIA inventories are 457 million barrels, compared to the five-year average of 466 million barrels for this period.
Cushing stocks in the Mid-West have also narrowed recently, showing 33 million barrels in inventory versus a five-year average of 40 million barrels.
Recent API Data has shown another build of 4 million barrels.
An Expanding Economic Tailwind
The U.S. economy continues to expand in 2024, driven by the high probability of a soft landing, fueling investor sentiment. Geopolitical Tension also plays a wildcard with the possibility of a widening Middle-Eastern conflict.
www.tradingview.com/cme/
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs
Disclaimers
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.