Crude Oil - Too Early For Celebrations

Thursday, 07/04/2016 | 12:06 GMT by Vitor Oliveira
  • Inventory data out today was bullish, but it's still just noise for now.
Crude Oil - Too Early For Celebrations
Bloomberg

Stock inventories were better than expected in both API and EIA reports, leading to a 3% increase in its price at the time of writing. As expected, intraday bulls are celebrating!

However these numbers, although very positive, should be treated with caution. Only a consistent drop in stocks could be considered to be a turning point. On the other hand, we shouldn't forget that the members of OPEC and non-OPEC countries are still far from an agreement of any kind.

As we wrote in our previous article on March 21, the price came to test a first level at USD 35 as expected. A technical rebound at this level would be normal, however what we didn't expect was that this occurred with help from these bullish numbers!

LCrude_Daily_20160406

If things remain the same, we suspect that the market will soon resume its correction to the area between USD 35 and USD 26, evolving in swings as the news coming from OPEC and non-OPEC members continues to come.

Perhaps this could be a good environment for swing traders ! Good trading!

Stock inventories were better than expected in both API and EIA reports, leading to a 3% increase in its price at the time of writing. As expected, intraday bulls are celebrating!

However these numbers, although very positive, should be treated with caution. Only a consistent drop in stocks could be considered to be a turning point. On the other hand, we shouldn't forget that the members of OPEC and non-OPEC countries are still far from an agreement of any kind.

As we wrote in our previous article on March 21, the price came to test a first level at USD 35 as expected. A technical rebound at this level would be normal, however what we didn't expect was that this occurred with help from these bullish numbers!

LCrude_Daily_20160406

If things remain the same, we suspect that the market will soon resume its correction to the area between USD 35 and USD 26, evolving in swings as the news coming from OPEC and non-OPEC members continues to come.

Perhaps this could be a good environment for swing traders ! Good trading!

About the Author: Vitor Oliveira
Vitor Oliveira
  • 4 Articles
  • 17 Followers
About the Author: Vitor Oliveira
Vitor has been a private trader in the stock market since 1999 and has been involved in the foreign exchange and precious metals markets since 2007. He began his trading journey alongside his professional career in the semiconductor industry, where he worked for 21 years. In 2009, he became a full-time trader, focused on major Stock Indices, Precious Metals and the major Foreign Exchange pairs. Occasionally, he contributes to blogs with market commentary and analysis.
  • 4 Articles
  • 17 Followers

More from the Author

Trading Room

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}