Thursday, October 15, 2015

WTIC West Texas Intermediate Crude COT (Commitments of Traders) and Daily Charts

WTIC oil is 46.12 as this is typed. perhaps establishing another sideways pattern the current sideways channel through 43-48. The red circles show oil bottoms and green circles are tops in oil prices. The flat nature of the COT bars limits its usefulness as a forecasting tool. The March bottom was a nice flush lower that provided confidence to go long crude.

The brown lines show the sideways patterns that oil slips into for 2 or 3 months, then adjusts higher or lower for 1 or 2 months, then a new sideways pattern. The candlestick chart shows long and strong indicators (green lines) as price made a new high except for the histogram that displays negative divergence and helped create the pull back in oil over the last few days. The expectation would be for oil to move higher again for another kiss of that 200-day MA resistance at 51. Sideways may be the order of the day for oil going forward.

Oil has been tracking with the stock market for the last few months but over the last couple days this relationship is wavering; this morning oil is lower with futures higher. The lack of oil demand due to a slowing global economy, ongoing robust oil inventories and Middle East turmoil may be in balance. 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.

Note: COT chart is provided courtesy of Cot Price Charts which is an excellent site to find all the commodity COT charts. The chart is annotated by Keystone.

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