RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Oil futures continue to trade sideways despite a hefty drawdown on Wednesday of 10 million barrels. I would expect prices to stick between $58 and $52 until some major shift occurs in the markets. This could either be a resolution to the trade war between U.S. and China, a sudden decrease in interest rates, or an escalation in tensions between the U.S. and Iran. Digging into the EIA data we are seeing current inventories at 427 million barrels versus the five-year average of 422 million barrels. Looking at the technicals, stochastics are steadily rising but the ADX is weakening. This tells you that the strength of this upward momentum is extremely weak and the 200 DMA at $56.96 should act as solid resistance.

Crude Oil Oct ’19 Daily Chart

Phillip Streible

Early in his career Phillip began trading his own account as a screen trader focusing on the metals, grains and stock indices. He then became a Series 7 licensed financial consultant with A.G. Edwards. Later, he expanded his trading experience into a Series 3 licensed commodity broker with Investment Analysis Group. Most recently he was a senior market strategist at MF Global before joining RJO Futures in October 2011 as a senior commodities broker. As a senior commodities broker his goal is to show clients how to anticipate, recognize and react to bull and bear market conditions through the use of technical analysis techniques that help them to define risk.