Oil Trading Daily Oil Chart - Crude Oil Price Chart 20th August 2009
This week sees the annual gathering of central bankers at Jackson Hole and one topic of conversation is likely to be the current state of the US Dollar and its future status as the world’s reserve currency. Indeed comments from the likes of Warren Buffett warning that the US Budget Deficit may harm the US Dollar can only lead to further increases in the price of crude oil as investors use the commodity to hedge against US Dollar devaluation. Interestingly crude oil is now perceived as an asset class in its own right and if reports that peak oil has arrived can only increase in value. Technically oil prices took a breather today, although WTI still managed to touch an intraday high of $74.07 per barrel, following the exuberant rally of the last 2 days which therefore came as no great surprise, and ended the oil trading session on a narrow spread down candle. An interesting point of note is that the open of the oil trading session was marginally gapped up from last night’s close suggesting that the bullish momentum remains firmly in place and indeed today’s move lower may well be attributable to profit taking rather to any technical change in sentiment. With crude oil prices now firmly established above the $72 per barrel resistance level this support platform should now provide the necessary springboard to a sustained move higher in the short term and provided equity markets continue to hold their nerve and the Dollar continues to weaken then there is no reason to suppose that we should not achieve our $75 per barrel target sooner rather than later, a view supported by the three moving averages .
Recent price volatility in crude oil, has presented us with many trading opportunities on both sides of the market, but to be successful you need an oil broker who not only understands the market, but also offers tight spreads, along with the latest news from around the world affecting the energy complex. One of the keys to success is to practise first, so if you would like a free trial of one of the best oil trading platforms around, then please just follow the link here, and get started trading oil – and you may still be eligible for your $1000, cash back !!! Alternatively if you would like to trade oil using the MT4 platform, then just follow the link here for one of the best Meta trader 4 oil brokers.
The short term is bullish, the medium is sideways & the long term is bullish.
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