The Wiseguy Report - Crude Oil 2023
CLX2023 NEAR TERM:: NEUTRAL / SLIGHTLY BEARISH
VOLUME STRUCTURE - CLX23
So far, for the year of 2023, 70% of the trading volume for the November contract has occurred between $95 & $89, with the highest volume around $91, which is the price of neutrality and market balance.
PRICE ACTION - CLX23
WTI strongly rejected prices above $92, and sold hard after reaching the current 2023 high of $95.
This week ended with WTI settling right near its highest volume price around $91, the price of neutrality and market balance.
OPEN INTEREST - CLX23
Open Interest (OI) has decreased for the first time since July, reducing the net-quantity of open contracts by about 32,000 contracts.
COMMITMENT OF TRADERS (COT) - CLX23
This week's commitments by large institutional speculative traders will not be published by the CFTC until next week on Friday. However, last week's commitments will be published shortly today. I will be watching for any reduction in long positions from 442.288k and increase in short positions from 113.862k by institutional speculators.
FUNDAMENTAL FACTORS - CLX23
- Seasonal Demand Destruction (Winter)
- China economy showing weakness
- Global economy showing weakness
- Less travel demand
- High jet fuel & gasoline prices hitting spot market
- Continued USD strength / Expensive Petrodollar
- FOMC is still slightly hawkish on interest rates, supporting a strong USD.
- OPEC+ Meeting :: October 5
I WILL BE UPDATING THIS NEAR-TERM NEUTRAL/BEARISH OUTLOOK ONCE PRICE MOVES AWAY FROM ITS HIGHEST VOLUME PRICE AROUNT $91, THE RPICE OF NEUTRALITY AND MARKET BALANCE.
EXPECT MORE SOON.
THANK YOU.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.