Friday, October 3, 2014

Oil COT (Commitments of Futures Traders) Weekly Chart

Crude oil has been slapped silly in recent weeks. The spread between WTIC (West Texas) and Brent oil has collapsed showing a lack of demand in the Middle East and Europe. Global demand for oil and commodities continues to leak away as China's economy slows. The red arrows on the oil COT chart show the sharp drop in oil price since the June-July topRed circles identify oil tops and green circles identify oil bottoms. The COT lags by a week or more and the bars are printing inside the green circles identifying a bottom in oil just like the prior lows and the COT is at levels comparable to the late 2013 low at similar WTIC prices at 91-ish.

When marrying the COT chart above to the oil weekly candlestick chart, a near term bottom appears to be in place for oil and it may develop into a multi-week rally. The weekly candlestick chart is attempting to place a base and more price action at 88-91 may be in order for a couple weeks but it appears a bottom may stiffen-up in this 88-91 area as indicated by the COT bars in the green circles now. WTIC crude oil dropped to 88.18 yesterday and then reversed in a wild upside move to 91.54. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

The COT chart is annotated by Keystone. COT charts are offered by the following excellent resource;

Cot Price Charts

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