OIL If oil prices push higher above 81$, they will prop the dollar in the medium term. Higher oil prices will influence inflation globally. Central Banks particularly the Fed might not cut rates until the later part of 2024. Fed Chair has already echoed these words citing that fed cuts are years away.
Once oil adds onto that equation, we might see a possible rate hike in 2024.
On the monthly charts, we have a consolidation around a strong demand level.
On the weekly timeframe we do not have a clear direction though the market seems to be pushing higher to mitigate inefficiencies at the 107-115 levels.
Dropping down to the 4 hour chart, we have a bullish bias targeting 77-90 levels.
Change of character plus flip zones in addition to multiple break of structures inform our bullish bias.
Oilforecast
Bullish Outlook for USOILHi Traders!
USOIL is in an ascending price channel as it looks to break back above the 75.00 level.
Here are the details:
The price action looks currently bullish; the market swings are getting higher, and the price is about to break back above the 20 EMA. Our idea here is to buy market dips leading up to the 20 EMA break. Short-term targets are levels around the 75.00 area, and long-term targets are levels near the resistance at 79.72.
Preferred Direction: Buy
Technical Indicators: 20 EMA
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Trade safely and responsibly.
BluetonaFX
Oil’s Tug-of-War: Iran Tensions vs. Evergrande Oil’s Tug-of-War: Iran Tensions vs. Evergrande
On Wednesday, WTI crude futures dropped below $77 per barrel, undoing a 1.4% increase from the prior session, all while the U.S. readies itself to address a lethal attack on its troops in the Middle East.
Perhaps traders are concerned more about the liquidation of China Evergrande, raising worries about the overall Chinese economy. There is fear that this uncertainty in China could lead to a decrease in demand for crude oil.
However, there is a question of whether traders might be underestimating the potential for U.S. responses to the lethal attacks to escalate tensions or lead to a conflict with Iran.
Despite President Biden expressing a desire to avoid a wider war in the Middle East, there are concerns about the unpredictable outcomes of such military actions.
The Guardian predicts dire consequences if there is direct American military retaliation against Iran. This could prolong the Gaza conflict, trigger a Hezbollah attack on Israel, escalate conflicts in Iraq and Syria, and destabilize friendly regimes in Egypt, Jordan, and the Gulf. Additionally, such actions could inadvertently assist China in pursuing its anti-democratic geopolitical ambitions and provide justification for Russia's aggression in Ukraine.
7 Diamnesion Analysis for OIL 😇 7 Dimension Analysis
Time Frame: H4
1️⃣ Swing Structure: Bearish
🟢 Structure Behavior: Break of Structure (BoS)
🟢 Swing Move: Corrective move is filled POi, now impulsive is starting
🟢 Inducement: Done
🟢 Pull Back: 1st and deep
🟢 Internal Structure: Bearish
🟢 Ext OB: Mitigated
🟢 Supply, Distribution, Rejection: Trendline broke, trend line Breakout/CIP done
🟢 Time Frame Confluence: Daily, H4
2️⃣ Pattern
🟢 CHART PATTERNS: Reversal, Rounding Patterns, Double top
🟢 CANDLE PATTERNS: Record Session count observed in internal leg, Shrinking long wick end, Change in guard engulf, Momentum: strict engulfing with bearish strength, Tower top also observed
3️⃣ Volume
🟢 Fixed Range: In this area, bears are already strong
🟢 No Volume during correction
4️⃣ Momentum RSI
🟢 Zone: Bearish sideways
🟢 Range shift: Bullish to sideways properly
🟢 Overbought rejections count: 2
5️⃣ Volatility Bollinger Bands
🟢 Middle band: Price below the middle band with a ninja candle bearish closing
🟢 Contraction: Fully
🟢 Two Band Punchers: Observed in the upper band
6️⃣ Strength According to ROC
🟢 Values: USD -3.05, OIL is -15
7️⃣ Sentiment
According to all sentiments, oil prices are under pressure
✔️ Entry Time Frame: H4
✅ Entry TF Structure: Bearish
☑️ Current move: Impulsive
✔ Support Resistance Base: Supply area rejection
☑️ Candles Behavior: RSC, bearish Momentum
☑️ FIB Trigger event: Done
☑️ Trendline breakout: Done
💡 Decision: Sell at opening
🚀 Entry: 73.45
✋ Stop Loss: 76.87
🎯 Take Profit: 62.55
2nd If Internal Structure Changes also Exit 3rd Trendline Breakout, Fomo
😊 Risk to Reward Ratio: 1:3.5
🕛 Expected Duration: 15 days
SUMMARY: The analysis suggests a bearish outlook, supported by structural, candlestick, and volume indications. Momentum in RSI and Bollinger Bands also align with the bearish stance. The decision is to sell at the opening with specific entry, stop loss, and take profit levels, considering potential internal structure changes and trendline breakouts.
Oil is under pressure from bearsHi, According to my analysis of the oil market, it seems to be in a very negative state. We notice that the market is in a downtrend with a descending channel forming as shown in the analysis. The price also rebounded from the demand block area at the 76 level, indicating further decline in the coming days. Good luck to everyone.
WTI H2 / RETRACEMENT FROM THE OB, SHORT TRADE OPPORTUNITY 📉🛢Hello Traders!
As expected, we can see a retracement of the OIL H2 from the resistance level, and also, from the OB at the price of 74.900. I see this retracement as a good signal of bearish domination, representing a good opportunity to execute a short trade.
Treaders, if you liked my idea or if you have a different vision related to this trade, write in the comments. I will be glad to see your perspective.
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Crude oil wants to make money to read this article!The recent rise and fall of crude oil, as a whole is a big shock, although it is an upward trend, but not so clear, yesterday's daily line is very unexpected unexpectedly closed the negative line, the rise is not coherent, such a market we understand as shock, today's thinking of shock more treatment, today's crude oil attention yesterday back to the low point is the bottom of the upward trend of 1 hour, Strong support is near 73.10, these two positions are the positions of bull sniping, and the positions of pressure are 75.50 and 76.50
Oil traders overreacting to the wrong triggers? Oil traders overreacting to the wrong triggers?
Divisions within OPEC have caused WTI crude to fall below $74 per barrel, ending a three-day climb for the commodity.
Angola, which joined OPEC in 2007, said it is leaving the Organization of the Petroleum Exporting Countries. This move raised concerns about OPEC's capacity to stabilize global prices, particularly amid disagreements over oil production quotas.
However, operational challenges in Angola have hampered the country's ability to reach its sanctioned daily output of 1.5 million barrels; so maybe its departure is not hugely damaging to OPEC’s control, and the market is overreacting to the wrong thing here.
Maybe, a more pressing issue could be the surging production in the United States. Recent data from the Energy Information Administration revealed a record-breaking daily output of 13.3 million barrels last week.
For one, Goldman Sachs has adjusted its forecast for the average oil price next year, reducing it by 12% due to ample production in the United States. In a note released last Sunday, Goldman revised its estimate, projecting an average of $81 per barrel in 2024, down from the previous estimate of $92 per barrel. Goldman Sachs anticipates it to reach its peak at $85 per barrel in June.
Meanwhile, Citigroup offers a more cautious outlook by forecasting an average 2024 oil price of $75. This stands as the lowest projection among the major U.S. banks
Oil Market Volatility due to Shipping Disruptions in the Red SeaIt has come to our attention that several shipping companies have temporarily halted their operations in the Red Sea, leading to a slight disruption in the transportation of oil.
As you are aware, the Red Sea is a crucial shipping route for oil tankers, connecting major oil-producing regions to global markets. Any disruption in this route can have far-reaching implications, causing ripple effects throughout the oil market. The current situation demands cautious consideration of our trading strategies, particularly regarding long oil positions.
While the exact reasons behind the shipping companies' decision to temporarily halt their operations in the Red Sea remain undisclosed, it is imperative that we closely monitor the situation and assess its potential impact on oil prices. The reduced availability of shipping routes may result in increased transportation costs, delays in deliveries, and potential supply constraints. These factors can contribute to short-term volatility and uncertainty in the oil market.
In light of this development, I encourage you to exercise caution when considering long oil positions. It is crucial to stay informed about the latest updates regarding the shipping disruptions in the Red Sea and their potential implications on oil supply and demand dynamics. We can better navigate the market and make informed trading decisions by remaining vigilant and responsive to these changes.
To stay updated, I recommend closely monitoring reputable news sources, industry reports, and official statements from shipping companies and relevant authorities. Additionally, engaging in discussions with fellow traders and industry experts can provide valuable insights and perspectives.
As always, I would like to emphasize the importance of conducting thorough research and analysis before making any trading decisions. While volatility can present opportunities, it also carries risks that need to be carefully evaluated. By maintaining a cautious approach and considering the potential consequences of the shipping disruptions in the Red Sea, we can mitigate potential losses and capitalize on favorable market conditions.
Should you have any questions or require further information, please do not hesitate to reach out to me via comment.
Oil's Next Move: Red Sea Conflict and $75? Oil's Next Move: Red Sea Conflict and $75?
BP has suspended all oil and gas shipments through the Red Sea due to a rise in attacks on cargo ships and a deteriorating security situation attributed to Iran-aligned Houthi militants in Yemen. This move has caused a 2% surge in oil prices, pushing WTI crude futures to $72.5 per barrel.
This development signals the first indication of a spill-over effect in Israel-Palestine tensions that could impact global supply chains in 2024. Some shipping companies are now avoiding the Red Sea/Suez Canal, choosing to navigate around Africa instead. This shift will likely contribute to increased supply costs and delays in the coming weeks.
There is a possibility of the U.S. military intervening to ensure the critical shipping route remains open. However, reports also suggest a potential near-term peace agreement between the Houthis and Saudi Arabia, which could eliminate the need for U.S. intervention.
Despite these uncertainties, the current abundance of oil supply might be constraining upward pressure on prices. The recent price increase could be attributed more to short covering, as money managers have consistently reduced their net long U.S. crude futures and options positions for the eleventh consecutive week, as reported by the U.S. Commodity Futures Trading Commission on Friday.
From a technical standpoint, WTI is currently making an effort to secure a closure above the $72.5 threshold, and beyond that, it aims for the $73.5 level, where the 20-day Moving Average is situated. The subsequent resistance lies at a significant psychological milestone of $75. The geopolitical situation holds a crucial role. If tensions persist, there is a possibility of breaching the current levels and a subsequent upward movement toward the $80 benchmark.
Weekly Price Prediction: $78.00 (Min) and $87.50 (Max)Projected Price Range
The anticipated weekly price range for Brent Crude Oil is expected to fluctuate between $75.62 (Min) and $81.93 (Max).
Contended Price Levels
$81.00 - $78.00 High Volume Node - potential support
$81.73 Resistance Line - potential resistance
$75.62 Support Line - potential support
Technical Analysis
Fibonacci Retracement Breakout:
The price has gone below the 0.5 Fibonacci level. This level is currently just a dollar above the blue resistance line.
Volume Profile Analysis:
High Volume Nodes (HVM):
Bottom HVM: Signifying an area of good liquidity and a potential support region. The price has stalled in this area over the last few weeks. If the price breaks downwards it could carry on.
MACD and Stochastic RSI:
Stoch RSI (Bottom Indicator): It has crossed over at the bottom and now has just about crossed over at the top. Showing overbought pressure and a potential downturn.
MACD (Top Indicator): This indicator has maintained just below the negative region and has refused to move out over the last few weeks. I don't see it going anywhere this week. I believe it will stay and we won't see a bullish signal this week from this indicator.
Additional Factors
Prior Resistance ( Top Blue Line):
Just above the Bottom HVM, a blue line represents a prior resistance level.
The blue line just crosses over the current price bar. Could be a potential resistance area as well.
Prior Support (Bottom Blue Line):
This represents a support level for the price. This may be crucial if broken as the HVM is just above it.
The blue line just crosses over the current price bar. Could be a potential support area as well.
Geopolitical Events:
Given the volatile nature of the commodities market, traders are advised to stay vigilant regarding any geopolitical events in the upcoming week, as these events can significantly impact oil prices.
Conclusion
To conclude we see the price range being between $75.62 (Min) and $81.93 (Max). This is due to the price staying within the HVM and seeing support with also a support line just below the HVM. However, there is a resistance line just above the HVM as well. These two support and resistance lines make our price range for this week. The Stoch RSI is showing a bearish sentiment so this will be crucial to watch out for. Also, something else which is crucial to watch out for is the blue line that has already crossed the current price bar. This will form new support/resistance. The MACD is effectively null this week.
LIOC.N0000LIOC Update on 01/11/2023
LIOC trying to break 50 Daily MA line. If LIOC can close few more daily candle 50 DMA line, then LIOC might run till 200 Daily MA level. So short term target will be 150.
Disclaimer: The information and analysis provided in this publication are for educational purposes only and should not be construed as financial advice or recommendations to buy, sell, or hold any securities. The author and TradingView are not responsible for any investment decisions made based on the content presented herein. Always consult a financial professional before making any investment decisions.
Evaluating OPEC+ Compliance Levels for Cautious Oil TradingAs you are aware, the upcoming OPEC+ member countries to implement potential oil-supply cuts has sparked considerable interest and speculation within the trading community. Today, I would like to draw your attention to the importance of evaluating the compliance levels of these member countries and how it presents a potential opportunity for cautious oil trading.
The proposed oil-supply cuts have been designed to stabilize oil prices amidst the ongoing global economic uncertainties. However, it is crucial to assess the actual compliance of OPEC+ member countries with these agreed-upon cuts. By doing so, we can gain valuable insights into the potential impact on global oil supply and demand dynamics.
To effectively evaluate compliance levels, it is recommended to closely monitor official statements, production data, and any relevant news updates from OPEC and non-OPEC countries. Analyzing these factors will provide a clearer understanding of how closely member countries are adhering to their commitments.
While evaluating compliance levels, it is important to maintain a cautious approach towards trading oil. The current market conditions are highly volatile and unpredictable, influenced by various geopolitical and economic factors. It is advisable to exercise prudence and carefully assess the potential risks associated with any trading decisions.
In light of the potential opportunities arising from the evaluation of compliance levels, I encourage you to consider engaging in oil trading. However, it is crucial to approach this market with a cautious mindset, ensuring that you have a well-thought-out trading strategy in place. Diversification and risk management should be at the forefront of your decision-making process.
As always, it is essential to stay informed and updated on the latest developments in the oil market. By leveraging reliable sources of information, you can make informed trading decisions and navigate the market with greater confidence.
In conclusion, evaluating the compliance levels of OPEC+ member countries with the proposed oil-supply cuts presents an opportunity for cautious oil trading. However, it is imperative to remain vigilant, assess the risks involved, and develop a sound trading strategy that aligns with your risk appetite.
Should you require any further information or assistance in evaluating compliance levels or refining your trading strategy, please do not hesitate to comment below.
Thank you for your attention, and I wish you successful and prudent trading in these challenging times.
Are OPEC+ voluntary cuts enough to support oil prices?After the latest OPEC+ meeting, the price of WTI crude oil dropped more than 2% to $75 per barrel, ending a two-day win streak.
During the meeting, OPEC+ agreed to cut oil production early next year by almost 2 million barrels per day (bpd). This decision was spurred by worries about having too much oil in the market coinciding with the end of Saudi Arabia's voluntary 1 million bpd cut.
Saudi Arabia said it would continue its cut until at least the first quarter of 2024. Russia also extended its cut to 500,000 bpd for the first quarter. Iraq agreed to reduce output by 211,000 bpd, and UAE pledged to cut 160,000 bpd in the first quarter.
However, OPEC+ also invited Brazil to join the group. Brazil said they plan to join in January and increase their daily oil output to 3.8 million barrels, countering the other members pledges to cut production and support prices.
OIL SELLHello, according to my analysis of the oil market. We notice that the market formed a triangle pattern and penetrated the pattern. But it was a bullish breakout. But it rebounded from a very important area, which is the 78 resistance level. A large red candle also formed, indicating strength in the sellers. Good luck to everyone.
7 Dimension Analysis For OIL🕛 TOPDOWN Analysis - Monthly Bullish Structure, Weekly Bearish Inducement
Overview: The monthly market structure maintains a bullish stance, holding key supports. On the weekly chart, a valid low was established, accompanied by a strong bearish inducement. While a demand flip occurred, the overall trend remains bearish, marked by a record session count and inside candle price action. The daily time frame reveals a bearish swing structure with impulsive moves, indicating potential further downside.
😇 7 Dimension Analysis
Time Frame: Daily
1️⃣ Swing Structure: Bearish
🟢 Structure Behavior: ChoCh
🟢 Swing Move: Impulsive
🟢 Inducement: Suggests potential further downward movement.
🟢 Pull Back: No significant pullback observed.
🟢 Resistance Zones: Market encounters resistance at every supply zone post- ChoCh, forming a bearish build-up, indicating potential future downside. No traps observed.
2️⃣ Pattern
🟢 CHART PATTERNS
Continuation
Symmetric Triangle
Shakeout Continuation
🟢 CANDLE PATTERNS
Notable Observations:
Momentum candles with Fake out/FOMO.
Tweezer at the internal move top.
Inside candles in the last three days.
3️⃣ Volume: Significant volumes observed at the beginning of the move.
4️⃣ Momentum RSI:
🟢 RSI Below 40: Indicates a super bearish zone with high selling pressure.
🟢 Range Shift: Shifted sideways to bearish, suggesting ongoing bearish activity.
🟢 Divergence: Hidden bearish divergence present.
5️⃣ Volatility Bollinger Bands:
🟢 Middle Band Resistance: Strong rejection observed.
🟢 Head fake: At the top of the move, indicating a potential deep bearish move.
✔️ Entry Time Frame: H1
✅ Entry TF Structure: Bearish
☑️ Current Move: Impulsive Bearish
✔ Support Resistance Base: Takes resistance at a significant level.
☑️ Candles Behavior: Extremely volatile bearish momentum.
☑️ Trend Line Breakout: Confirmed.
☑️ Final Comments: Sell at the open.
💡 Decision: Sell
🚀 Entry: 75.22
✋ Stop Loss: 78.04
🎯 Take Profit: 68.07, 2nd Exit if Internal Structure Changes, 3rd Exit on a trendline breakout or FOMO.
😊 Risk to Reward Ratio: 1:3.5
🕛 Expected Duration: 7 days
SUMMARY: The analysis reveals a monthly bullish structure but a weekly bearish inducement. The daily swing structure is bearish with an ongoing impulsive bearish move. Recognized patterns include a symmetric triangle and shakeout continuation. Critical levels, candle patterns, and trendline breakouts were considered for the entry decision. The suggestion is to sell at the open, with detailed entry, stop-loss, and take-profit levels, presenting a risk-to-reward ratio of 1:3.5, and an expected duration of 7 days.
WTI Price Stability Around $75 Amid OPEC+ Cut ExpectationsWestern Texas Intermediate (WTI), the U.S. benchmark crude oil, is currently trading near $75.05 as of Tuesday. WTI prices show modest gains, supported by expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will extend oil production cuts in the upcoming Thursday meeting.
Amid the recent oil price slump, analysts predict that OPEC+ might consider extending or deepening production cuts into the next year. Saudi Arabia, the world's major oil exporter, is expected to prolong its supply cuts by an additional 1 million barrels per day into the next year, while Russia may contemplate further supply reductions of 300,000 barrels per day. If OPEC+ decides on deeper production cuts next year, it could restrain the downward momentum of WTI prices.
Furthermore, China is set to release National Bureau of Statistics (NBS) Purchasing Managers' Index (PMI) data on Thursday. Better-than-expected data might uplift WTI prices, considering China's significant role as the world's leading producer and consumer of oil.
On the flip side, the International Energy Agency (IEA) anticipates a mild surplus in crude oil production by 2024, even with OPEC+ extending cuts into the following year. Additionally, robust production from non-OPEC countries like the U.S. could contribute to price pressure.
Traders in the oil market will closely monitor U.S. growth figures on Wednesday, with the annual Gross Domestic Product (GDP) for Q3 expected to rise by 5%, up from the previous 4.9%. On Thursday, U.S. Personal Consumption Expenditures (PCE) inflation and China's NBS PMI data will be announced. The outcome of the OPEC+ meeting over the weekend will be crucial for oil traders, as these events could significantly impact WTI prices in USD. Oil traders will interpret signals from the data and explore trading opportunities around WTI prices.
Oil Continues to Decline Ahead of OPEC MeetingAs the global demand for oil continues to decline, coupled with the upcoming OPEC meeting, it is crucial to approach this situation with caution and strategic planning.
Over the past few months, we have witnessed a steady decline in oil prices, primarily driven by various factors such as geopolitical tensions and a shift towards renewable energy sources. This downward trend has created a potential opening for traders who are keen on shorting oil.
The upcoming OPEC meeting adds an additional layer of complexity to the situation. As market participants eagerly await the decisions and actions of major oil-producing nations, it is essential to stay informed and remain adaptable to potential market fluctuations.
While the opportunity to short oil may seem enticing, it is crucial to acknowledge the inherent risks and volatility associated with this trade. As experienced traders, you understand the importance of conducting thorough research, analyzing market trends, and implementing risk management strategies.
To maximize your chances of success, I encourage you to consider the following steps:
1. Stay updated: Continuously monitor the latest news and developments surrounding the oil market and the upcoming OPEC meeting. This will help you identify potential catalysts that may impact oil prices.
2. Utilize technical analysis: Leverage technical indicators and charts to identify key support and resistance levels, as well as potential reversal patterns. This will assist you in timing your trades effectively.
3. Implement risk management: Set clear stop-loss orders and determine your acceptable risk levels. This will help protect your capital and ensure you have a disciplined approach to trading.
4. Diversify your portfolio: Consider spreading your risk by exploring other trading opportunities within different sectors or asset classes. This will help mitigate potential losses and increase your chances of overall profitability.
Remember, trading oil requires a cautious approach and a keen eye for market trends. While the current downtrend presents an opportunity, it is crucial to remain vigilant and adapt your strategies as new information emerges.
Should you require any further assistance or have any questions, please do not hesitate to reach out in the comments. . I am here to provide the necessary guidance and support to help you navigate this volatile market.