Daily analysis Forex & Gold

[davidck9]

Get daily basis analysis on all major pairs, Crude oil and gold

 

[davidck9]

USOIL (WTI Crude) Tests Key Support Zone​

Tuesday was a topsy-turvy day on the markets with US equities putting in a whipsaw session. One of the big winners was USOIL, which posted a solid daily gain above 2%.

The action was a bit counterintuitive as a strong USD typically means weaker commodity prices. Nonetheless, WTI was on the uptick ahead of this week’s inventory cycle.

On Wednesday, the EIA is due to release their weekly crude oil inventories report. Analysts expect the number to come in at 0.443 million barrels, well off of the previous release of 1.142 million. If today’s API number is any indication, the EIA is positioned to surprise.

USOIL has found some support near a key Fibonacci retracement level.

78% Monthly Retracement, $76.82

Thus earlier in the week, saw a hard test of the $76.82 level. At this point, the weekly low is $76.28. Moving into Q4, the zone between $76.82 and $75.00 is likely to be a key support area. If Wednesday’s EIA figures show a significant build, then USOIL may very well test downside support in short order.

 

[davidck9]

Resistance In View For WTI Crude Oil Futures​

The Thursday session is off and running, and WTI crude oil is extending Wednesday’s gains. It appears as though the market is actively pricing an ominous EIA inventories report into CME WTI crude oil futures. At press time, WTI is pushing weekly gains above 4.5%.

Going into late-week trade, there is a key resistance level on my radar:

Weekly 38% Retracement, $84.07

As we roll toward the conclusion of Q3 (Friday), institutional players appear to be interested in the long side of the crude oil market. However, that bullish sentiment may be short-lived. It’s a good idea to be ready for anything as the final hours of Q3 2022 tick off the clock.

On compressed time frames, shorts from just beneath $84.00 at isn’t a bad way to play the action. Sells from $83.94 should be good for a 25-tick payoff on a standard 1:1 risk vs. reward ratio.