By Fast Brokers – Crude’s recovery from sub-$70/bbl levels is continuing today. The futures are now approaching their psychological $75/bbl as investors snap up the oversold futures. It’s difficult to give a definite reason for crude’s rise today. From a weakening Dollar to a cold front in the U.S., analysts are pointing their fingers at a barrage of catalysts for crude’s bounce. However, today’s weakness in the Dollar has been benign thus far compared to its strength so far this week. Furthermore, it’s uncertain how the U.S cold front will impact crude. Therefore, we may conclude that comments emanating from OPEC leaders that the major oil producing countries are not likely to increase production at their meeting on Tuesday is the driving factor behind crude’s pop. Another positive catalyst for crude could be the strong Philly Index number yesterday, countering a weak showing from the Empire Index earlier this week. Healthy levels of manufacturing bode well for crude’s outlook demand outlook. Meanwhile, we’re about finished with data for the trading week. Furthermore, activity could slow down next week as investors check out early for Christmas vacation. Therefore, crude may soon return to its dependence on the Dollar following OPEC’s meeting on the 22nd.
Technically speaking, crude futures now have multiple uptrend lines serving as technical cushions along with the psychological $70/bbl area and December lows. As for the topside, crude futures still face multiple downtrend lines along with 9/17 highs and the psychological $75/bbl level should it be tested.
Price: $73.95/bbl
Resistances: $74.29/bbl, $74.55/bbl, $74.85/bbl, $75.15/bbl, $75.86/bbl, $76.49/bbl
Supports: $73.69/bbl, $73.12/bbl, $72.84/bbl, $72.43/bbl, $71.78/bbl, $71.28/bbl
Psychological: $75/bbl, $70/bbl, December Lows
Market Commentary provided by Fast Brokers.
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