• 7 minutes Get First Access To The Oilprice App!
  • 11 minutes Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 13 minutes Oil prices forecast
  • 17 minutes Renewables in US Set for Fast Growth
  • 44 mins Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 6 hours Socialists want to exorcise the O&G demon by 2030
  • 3 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 2 days Is Natural Gas Renewable? I say yes it is.
  • 16 hours Cheermongering about O&G in 2019
  • 8 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 2 days Making Fun of EV Owners: ICE-ing Trend?
  • 2 days Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 23 hours Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 2 days Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 1 day North Sea Rocks Could Store Months Of Renewable Energy
  • 21 hours Oceans "Under Fire" Of Plastic Trash
  • 2 days Orphan Wells
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Market Forecast & Review 17th January 2014

February crude oil consolidated on the weekly chart last week, suggesting the market may be poised for another short-covering rally. Based on the short-term range of $100.75 to $91.24, traders are anticipating a rally into the retracement zone at $96.00 to $97.12. Since the main trend is down, short-sellers are likely to show up following a test of this zone, setting up the market for another drive toward the $90.00 area.

Despite a clearly defined retracement zone and upside target, the expected rally into this zone is likely to be labored because of various resistance angles and confusing fundamentals. The first resistance is an angle from the $100.75 top at $94.75 the week-ending January 17 and $92.75 next week. This is followed by another major downtrending angle at $96.22 this week and $95.72 the week-ending January 24. Upside momentum is going to have to be strong enough to drive through these levels. Since short-covering has been the main driver of upside action recently, the rally is expected to be weak. This will leave the market in control of the bears.

Last week, the Energy Information Agency reported a seventh consecutive drop in crude supplies, but the news failed to attract any significant buying interest. A few of the weaker shorts covered, but too many concerns kept bullish investors on the sidelines. In addition, despite oversold conditions on the daily chart, there just doesn’t seem to be any solid interest on the long side at this…

To read the full article

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

RegisterLogin



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