“Snapshot of a stop hunt!”
Well, isn’t that special? … my first thoughts on hearing that terrorists
attacked Saudi tankers in the Straits of Hormuz was, were they long oil
futures first? … cuz if so, not only do they finance the next attack, they sell
at the top and bag some millions in the process … and in oil, it’s very much
a possibility.
Both sides of the WTI & Brent order books get taken to the cleaners today
… first the buy stops above the 100 & 200 MA’s, and then once realizing there
was no threat to Saudi oil, and the fact that the China trade news debacle
would mean lower world oil demand, then the sell stops get taken out. The
chart from the HR1 directly below.
click to enlarge chart
A rough day to be sure, but in the end it’s all about supply disruptions [nope],
and lower demand given the news [Yup] … oil has been s enigmatic as any
other market lately, supported by Venezuela & Iran sanctions along with
OPEC+ supply cuts, and some serious resistance from lower world oil demand
… as such, we’re stuck in the low 60’s for WTI & the upper 60’s for Brent.
Here in the low 60’s for WTI, the market is stuck … we’ll see what tomorrow
brings to oil, besides more confusion & chaos, and nothing more than technical
trading. The “fun-dur-mentals” on both sides are firmly in place for now.
Have a great day everybody!
-vegas
No comments:
Post a Comment