Oil market explained.
Today Oil dropped below the 42 level and after that the price dropped of hard. It was because of news that OIL supplies are at record highs. The Oil reserves are likely to stay high meaning the price will stay under downward pressure until the end of the year and likely even deep into 2016.
Oil trade explained.
As said the Crude Oil price level dropped below the 42 Dollar a Barrel level. After that it was obvious visible on the chart that sellers stepped in to push price lower. On this screenshot you see the movement in a 5 minute chart. You see the 42 level getting crossed, the price retesting the 42 level and after that the moving averages crossing down. The whole move only had one real pull back. That was after it crossed the weekly support that became resistance. This was also a good entry for a first or second trade in this market. At the end of today we probably see some profit taking as its Friday end of the week and option contracts get closed out. But the Oil market price is likely to stay under pressure.
Interesting articles about Oil
If you want to read more insights you can read these articles.
- Oil stockpiles have swollen to a record of almost 3 billion barrels
- Surplus oil inventories are at the highest level in at least a decade because of increased global production
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Wilco van Boxtel is Chief Currency Trader & Mentor at TradeReact. He has over 17+ years trading experience since 1998. Besides currencies he knows many other markets and assets. Now he is here to educate and inspire you to be successfull in trading too. Subscribe and follow his lead.