{"id":12188,"date":"2010-08-19T07:50:25","date_gmt":"2010-08-19T11:50:25","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=12188"},"modified":"2010-08-19T07:50:25","modified_gmt":"2010-08-19T11:50:25","slug":"further-bullish-signals-show-potential-appreciation-for-spot-crude-oil-prices","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/08\/19\/further-bullish-signals-show-potential-appreciation-for-spot-crude-oil-prices\/","title":{"rendered":"Further Bullish Signals Show Potential Appreciation for Spot Crude Oil Prices"},"content":{"rendered":"

By Russell Glaser<\/strong> – The price of spot crude oil fell sharply today but managed to climb back following better than expected weekly inventory data from the U.S. government. Another bullish indicator <\/a>hints to an end of the short term correction and a potential price appreciation in the near term.<\/p>\n

Spot crude oil prices traded as low as $74.18 today as the drop in prices that began in yesterday\u2019s New York trading session continued into today\u2019s trading. Broad based selling was seen following yesterday\u2019s negative report from the American Petroleum Institute (API). The API stated crude oil stockpiles rose more than expected. This sent spot crude oil prices tumbling into today\u2019s trading.<\/p>\n

Spot crude oil prices finished the day near the $75.55 level after opening the day at $76.02.<\/p>\n

The falling prices continued until today\u2019s release of the U.S. Department of Energy Administration weekly crude oil inventories report showed a smaller than expected decline in crude oil stocks. U.S. crude oil inventories declined by only 0.8M barrels while economists had forecasted a decline of 1.1M barrels.<\/p>\n

The contrast in the two data releases may have contributed to the increased volatility in the price of spot crude oil. Spot crude oil traded in a range today of $1.92. The Average True Range (14) for the commodity is only $1.58.<\/p>\n

Despite the high price volatility, the bullish trend looks to be intact as spot crude oil prices rallied on today\u2019s positive inventory data. As the price came back from its lows today, a hammer candlestick pattern has formed. This may signal an end to the recent bearish correction.<\/p>\n

Technical indicators show the price may be in line for further gains. The bearish correction failed to close below the short term rising trend line, signaling the bullish uptrend is still valid and the failed breach only serves to reinforce the importance of this trend line.<\/p>\n

A buy signal is also shown on the daily chart. The Slow Stochastic oscillator displays a bullish cross, indicating the next move of the price may be to the upside. The last time a bullish cross appeared on the stochastic, the price of spot crude oil rose to close above the significant resistance level of $80.
\nResistance for spot crude oil trading is found at $78 (R1), followed by 79.90 (R2), and the August high at $83. However, support should be adjusted lower to today\u2019s low at $74.18 (S1), just below the rising trend line. Should the price close below this support level, it would signal a shift in the trend to the downside.<\/p>\n

\"\"<\/a><\/p>\n

Forex <\/strong>Market Analysis provided by ForexYard.<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Russell Glaser – The price of spot crude oil fell sharply today but managed to climb back following better than expected weekly inventory data from the U.S. government. Another bullish indicator hints to an end of the short term correction and a potential price appreciation in the near term. Spot crude oil prices traded … <\/p>\n

Continue reading “Further Bullish Signals Show Potential Appreciation for Spot Crude Oil Prices”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12188","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/12188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=12188"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/12188\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=12188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=12188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=12188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}