Technician

Is the Rally in Oil Sustainable ?

FX:USOIL   Crude Oil (WTI)
289 9 1
Interesting correlation between copper             and WTI Crude oil             illustrated on chart, as copper             has been a good leading indicator or crude in most of cases. More details at
WTI Crude Oil & Copper Making Sense of Correlations


As oil             rallies copper             remains weak and not confirming, and that makes me skeptical about this rally in oil             prices, unless copper             starts to pick up and rally breaking the recent range bound.

For more trade setups follow me @ https://twitter.com/FxInstinct

Latest trading ideas: https://www.youtube.com/channel/UC02s7uiUQl55HkhHZDM6eUw/videos

Free Telegram Channel: https://t.me/technician_forex_trades

Trading Signals Redefined: https://thefxchannel.com
Simply, high demand due to bad weather, low oil reserve, and inflation cause rally in Oil.
Reply
"Bad Weather" "low oil supply" = Temporary Reasons.
"Inflation" = I am not sure what inflation are hinting? Since Global economies are facing downside Inflation risks
Reply
Sforex Technician
I am talking about short term to medium term.

About inflation, LET IT BE. Low Interest Rate and Stimulus package one day trigger for inflation, the problem is TIME.
Reply
"Bad Weather" "low oil supply" = Temporary Reasons.

Reply
Technician TOP Technician
"About inflation, LET IT BE. Low Interest Rate and Stimulus package one day trigger for inflation"
I think this is irrelevant,
Low Interest Rate and Stimulus package have been here for five years now
Reply
Sforex Technician
I am talking about the effect of low interest rate and stimulus : gradually, it will effect on commodity price.
Reply
Low Interest Rate and Stimulus package have been here for more than five years, surprisingly gold fell to multi-year lows,and commodity space in general under heavy pressure. Meantime, no real indication for a rise in inflation. Japan and the euro zone is fighting deflation actually, while U.S. inflation figures are well below medium term targets. So markets aren't anticipating inflation and accordingly wont discount this on oil prices.
Reply
Sforex Technician
You are talking about USoil, I dont mention Japan or EZ.

Secondly, the CPI of US now 1.5% , near 2% target. FED decided to unwind the QE3 due to the inflation could be rally in the future.

About Gold, Gold falls down because when FED unwinds the QE, less dollar is injected to market, dollar is stronger, gold is anti-dollar, so gold fell down as a result.

Inflation is the only reason. The main reason for the rally of oil recent weeks are bad weather + oi reserve.

The weather of North America is very extreme cold, so the gas using rises up, oil and gas increase as a result.

The oil supply of the world is to the limit, cannot product more . Oil reserve falls down is absolute.
Reply
"You are talking about USoil, I don't mention Japan or EZ." : !! Are u serious? Oil is a global market.

"Secondly, the CPI of US now 1.5% , near 2% target. FED decided to unwind the QE3 due to the inflation could be rally in the future" :did the fed say that, if yes please direct me to it? by the way the fed targets 2% for price index for personal consumption expenditures, not the CPI.

For the Last three points again = Temporary Reasons.
Reply
United States
United Kingdom
India
Deutschland
España
France
Việt Nam
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Support Priority Support Report Issue Ideas Published Followers Following Private Messages Chat Sign Out