• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 2 hours One Last Warning For The U.S. Shale Patch
  • 2 hours Modular Nuclear Reactors
  • 4 hours Dutch Populists Shock the EU with Election Victory
  • 5 hours Climate change's fingerprints are on U.S. Midwest floods
  • 2 days Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 17 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 1 hour 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 16 hours Telsa Sales in Europe
  • 17 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Chile Tests Floating Solar Farm
  • 2 days Poll: Will Renewables Save the World?
  • 13 hours The Political Debacle: Brexit delayed
  • 3 days US-backed coup in Venezuela not so smooth

Oil Market Forecast & Review 27th December 2013

February crude oil futures continued the rally it began several weeks ago at $92.10. Based on the break from $106.22 to $92.10, the market has already retraced more than 50% of this range. The retracement zone target at $99.16 to $100.82 could slow down the rate of ascent, but so far it doesn’t look like the move is attracting fresh shorting pressure despite the downtrend on the weekly chart.

The main trend will change to up on a trade through $102.52. A trade through $92.10 will reaffirm the downtrend. Because of this, one has to assume that the current move is still being driven by short-covering rather than fresh buying. How the market reacts inside this zone will determine the strength of the trend over the near-term.

Last week, the market broke through a downtrending Gann angle from the $106.22 top, moving  .50 per week. This week, the market confirmed the move when it held above the angle, currently at $97.72.

Besides the move to the strong side of the downtrending angle and the 50% level, the market is currently in a position to test an angle moving up $2.00 per week. This angle is at $100.10 this week and $102.10 next week. Overtaking this angle will mean that upside momentum is increasing.

A failure to overcome the angle as well as the retracement zone will mean that upside momentum is slowing and that the market is getting ready to roll over to the downside. The nearest support angle is at $96.10 this week and $97.10 the next.…




Oilprice - The No. 1 Source for Oil & Energy News