Tuesday, July 25, 2017

WTIC Crude Oil and COT (Commitments of Futures Traders) Weekly Charts

The red circles identify the tops and the green circles the bottoms for oil over the last year. The COT bars are moving outwards hinting that a top is closer for oil price than a bottom. The COT data lags by a week or two. The downward-sloping channel is in play with lower lows and lower highs (white dots). Price may want to test the top rail that forms a confluence with the 20 and 50-week MA's at 47.86-49.07. WTIC oil price is 46.84 as this message is typed on Tuesday morning. 

The indicators are not providing any clues simply stumbling and bumbling sideways. Oil may want to poke around at the 47-49 level going forward. The US dollar index is due for a rebound, at the least a dead cat bounce, so that would occur in concert with oil pulling back. 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: The COT chart is from Cot Price Charts and annotated by Keystone.

Note Added 6:05 AM EST Wednesday Morning, 7/26/17: Oil jumps +3.5% higher yesterday with West Texas at 48.50. Price wasted no time popping up into the range described above. WTIC HOD is 48.66 testing the resistance from late May early June and is spanked down on the first try. The 50-week MA at 49.10 is resistance and the 20-week MA is support at 47.94. Oil bulls win above 49.10 while oil bears win under 47.94.

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