RJO FuturesCast

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Energies

Crude Charts Damaged

Posted 08/09/2019 12:32PM CT | Michael O'Donnell

The last couple weeks have seen an FOMC rate decision shift, unemployment, a tariff increase tweet and much, much more. The crude oil contract and others have seen significant moves and corresponding chart damage which could have further implications. As noted previously, producer quotas mark a market operating at oversupply and these changes to demand do not help, certainly factored into the price action.

Also, yesterday saw extremes and a bounce from the lows in oil, although the recovery today is on lighter volume, and the market has recovered from this level early June. Should the market fail to recover this time, a run to December levels could be possible.

Looking to the chart below, the trendline from the December and June lows was traded through yesterday and it does not seem, as of this writing, that it will be trading close to that point today. There may be some encouragement from the RSI near 30 and the recovery from yesterday’s low, although outside markets and some fundamental factors point otherwise.

Michael O'Donnell

Mike started his career in the markets on the floor of the Chicago Board of Trade as a trade checker for a local market maker in the Dow Futures pit. This led to interning with an independent introducing broker and going on to work with a number of market participants including: speculating clients, hedge clients, introducing brokers, futures commission merchants, commodity trading advisors, proprietary traders, trading educators, system creators, and a number of international financial market participants.