RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Energies

Crude Recovery Passing EIA Test

Posted 09/05/2019 10:31AM CT | Michael O'Donnell

As of Thursday morning, the October 2019 Crude Oil contract is trading up about $1.24 per barrel at $57.50 as the market weighs a number of factors, including a 4.8-million barrel draw from the holiday delayed EIA this morning. Also bullish for the market are some outside forces such as a weaker dollar, announcements of trade talks between U.S. and China, and a good ADP number this morning.

Of definite interest are the 200-day moving average and upper trendline pictured below. As many have noted the range of this market, I have also noted $57.50 frequently in these posts and the market seems to be respecting that level as of this writing. Further strength above these levels could bode well, whereas a failure could be a good opportunity to short back to the range.

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Michael O'Donnell

Senior Market Strategist
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.
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