• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 40 mins Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 50 mins OPEC Cuts Deep to Save Cartel
  • 2 hours What will the future hold for nations dependent on high oil prices.
  • 3 hours Price Decline in Chinese Solar Panels
  • 3 hours And the War on LNG is Now On
  • 7 hours Alberta Cuts Push Prices Too High
  • 1 hour How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 1 day Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 2 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 2 days Permian Suicide
  • 2 days Asian stocks down
  • 4 hours Rigs Down

Breaking News:

Total To Boost Exploration In Mauritania

Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 13th December 2013

February Crude Oil futures rallied for a second consecutive week, however, the weak follow-through to the upside indicates that the move was most likely triggered by short-covering rather than new buying. In addition, technical factors played a role in stopping the rally as well as skepticism over the latest supply and demand data.

Technically, the market did all that it was expected to do after reaching a major retracement zone on the weekly chart at $95.90 to $93.46 and reaching oversold levels on most oscillator and indicator charts. The subsequent reversal to the upside was triggered by short-covering after commodity funds had built up huge positions and the market ran out of sellers.

Based on the break from the late August top at $106.22 to the late November bottom at $92.10, technical analysts were expecting a retracement into $99.16 to $100.83. As of December 11, February crude had reached a high at $98.92, before profit-taking and fresh shorting killed the upside momentum. The market is now setting up for a possible retracement of the rally from $92.10 to $98.92, making $95.51 the next potential downside target.

Also stopping the market was an angle moving down .50 per week from the $106.22 top. This angle stopped the rally at $98.72 the week-ending December 13. It moves down to $98.22 the week-ending December 20.

The first possible support level is an angle at $96.10 the week-ending December 13 and $98.10 the following week. Breaking…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




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