Crude support around $45.7-$46… all long trade should be with strict S/L of 45.5
On Daily Chart support is @ $44.30
it took the S/L of $45.5 and went towards $47+
My personal view still bearish on the crude oil
Currently I have two short position at 47.00 & 45.50 with the profit taking target at 41.00
It may takes weeks to reach and I am confident it can reach 41.00
The economic slowdown in China has raised concerns about the demand prospects for the world’s crude oil. I expect prices to remain subdued as Iran is preparing to make a comeback to the market. The downbeat trend clearly suggests the rout fuelled by a supply glut and jitters about the global economy. A firm dollar too contributed to the plunge in the oil prices. US producers of shale are too not trimming down the production at a required pace to match the slowdown in global demand. API data posted a decline in crude oil stock but distillates and gasoline stock remained at large. Technically, oil breached major support of $30 but managed to rebound from that. So if the prices drop below the support, we might see some major technical selling pressure in the market. $36 a barrel would be a strong resistance level.
Crude Oil which was above $100 in 2014, more than half of its value has been slashed as it trades around its crucial levels of $30. In this year of 2016, amidst the presence of supply glut, the lift off of the sanctions from Iran added to the panic and made the crude oil fall to its 13-year lows around $27.
However, crude oil is trading currently above $30, but in the presence of the geo-political tensions, OPEC stubborn attitude of not cutting its production, stagnate demand from major countries and mild cold weather in Western nations will impact its prices further. It can be said that journey of crude oil can be GLOOMY atleast for the first half of 2016. :43:
The news of the OPEC and NON OPEC members getting along with each other and decide to cut the production is just a hoax I guess. SA will never agree to cut its markets share now that Iran has come into the picture where it has said to increase the production slowly and gradually and keep the oversupplied market constant and the tensions between the 2 countries would bring no result to the meeting. The bounce was just a dead cat bounce and price will go back to $27 shortly.
The possibility that Iran would start exporting oil once it was no longer subject to international sanctions had led to the plunge in oil prices.
Growing demand will mean most of the oversupply in the market will be mopped up from the second half of next year.