RJO FuturesCast

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Energies

Crude Oil Approaching Daily Averages

Posted 08/22/2019 9:19AM CT | Michael O'Donnell

Thursday morning’s trading has the October 2019 Crude oil contract trading near $56.18, up $0.50 on the day as the market continues its strength since the August 7th low. The market is also approaching the 50, 100, and 200-day moving averages and traders may note if these act as resistance or support in the near future.

The market has weighed several factors, including:

  • continued saber rattling from Iran
  • record production from the U.S.
  • draws from inventory featured in yesterday’s E.I.A. report
  • global economic health – outside markets

Moving forward, the market should continue to weigh these factors in addition to further developments. Should the market trade past the averages pictured in the chart below, there is the possibility that the market trades toward the upper end of its range, especially considering a potential double bottom the June and August lows. Should the market remain below the averages, it is not difficult to imagine the market re-testing the some of the years lows.

Crude Oil Oct ’19 Daily Chart

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.