• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 1 hour Alberta govt to construct another WCS processing refinery
  • 6 hours Let's Just Block the Sun, Shall We?
  • 5 mins U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Venezuela continues to sink in misery
  • 17 hours OPEC Cuts Deep to Save Cartel
  • 3 hours Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 21 hours $867 billion farm bill passed
  • 1 day Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 days Sleeping Hydrocarbon Giant
  • 1 day WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 19 hours Global Economy-Bad Days Are coming
  • 21 hours Regular Gas dropped to $2.21 per gallon today
  • 22 hours IEA Sees Global Oil Supply Tightening More Quickly In 2019
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 14th June 2013

After a successful test of a short-term retracement zone at $91.88 to $90.56, August Crude Oil futures appear poised to breakout over a downtrend line that has been providing resistance since early February.  The trend line drops in at $96.87 this week. Sustaining a move through this price with rising volume will be a strong sign that speculators are ignoring the immediate fundamentals and instead have chosen to focus on the possibility of greater demand because of an improving economy.


Click to enlarge

The triangle chart pattern that has contained the price action for several months is known as a non-trending chart pattern. The fact that the market has retraced over the mid-point of the $106.76 to $81.87 range at $94.31 several times is a clear indication that investors lacked clarity and conviction.

At this time, the market is trading on the strong side of the pivot price, indicating that the buying is greater than the selling at current price levels. The fact that the action has been contained inside of the triangle for several months leads one to believe that the market is poised for increased volatility. If the breakout takes place as expected and fresh money follows the move then look for August Crude Oil to begin to pull away from the confining chart pattern.

Technical traders aren’t going to wait for the fundamental news to confirm the rally. They are willing to speculate that new money is going to arrive on the breakout alone.…

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