• 4 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 7 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 10 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 13 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 7 hours The 5 Scary New Rules Of Upside-Down Capitalism
  • 1 hour Hydrogen Hurdles in Japan
  • 3 hours Winter Storms Hitting Continental US
  • 16 hours More dumbed down? re Hong Kong Act of Congress
  • 8 hours U.S. Shale To Break Records Despite Bearish Rhetoric
  • 8 hours PennEast Appealing Wacky 3rd Circuit Decision to Supreme Court
  • 11 hours Impeachment S**te
  • 5 hours Aramco IPO magic trick
  • 9 hours Contaminated Oil
  • 21 hours U.S. Shale Output may Start Dropping Next Year
  • 9 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 18 hours Petroleum Industry Domain Names
  • 23 hours Crazy Stories From Round The World
  • 8 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 8 hours Pope Proposes New Sin: Thou Shalt Not Destroy The Harmony Of The Environment
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Prepare For Volatile Oil Markets As Technical And Fundamental Traders Clash

Crude Oil Outlook

April Crude Oil showed strong resilience over the last two weeks, but both moves were related to technical factors. The fundamentals remain bearish, but that didn’t stop the buyers from bargain hunting after the release of the latest weekly U.S. Energy Information Administration inventory report. The clash between the technical and fundamental traders is likely to lead to volatile trading conditions so prepare for the possibility of a choppy, two-sided trade over the near-term. 

The daily chart pattern demonstrates that traders are focusing on two chart patterns. The short-term pattern shows that a range has formed between $44.37 and $55.05. Its 50% to 61.8% retracement zone at $49.71 to $48.45 is controlling the short-term direction of the market. On February 5, traders tested this zone, briefly breaching it to $48.20. The second test was on February 11 when the market reached a low inside the zone at $48.93. Based on the price action and order flow inside this zone, it’s safe to say that buyers are trying to establish support inside this zone.

The basic definition of an uptrend is “a series of higher tops and higher bottoms. A change in trend occurs when a previous top is overtaken. On February 3, April Crude Oil turned the trend to up on the daily chart when the previous high at $52.27 was taken out.

Following a top at $55.05, the market proceeded to break to $48.20 where it established a new higher…




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