Crude Oil prices have been hot topic lately. Crude Oil futures touched this year high early this week after touching its low early this
year.
Crude Oil Investing Strategies - Generatebucks.com |
Energy counters never lose their trading charm. Natural Gas
and Crude Oil prices have been hot topics looking at the movement in prices.
Both counters are highly volatile and highly dependent on production and
supply. With immediate change in production and supply, we could see an immediate impact on trend and price movements.
Crude Oil Investing techniques
Natural Gas is a seasonal commodity while Crude Oil is
highly in demand throughout the year. Investing in Crude Oil futures is risky
but your returns of investments are great.
A month ago WTI Crude Oil futures was trading as low as
$58.50 compared to $66.50, this week high.
Prices jump since the sanctions on Iran will be effective
starting first week of May. With cancellation of the wavier, Crude Oil inventories
were expected to drop. The Trump Administration significantly tightening the
economic squeeze on Iran, announcing it will try to bring down Iran’s oil
exports to zero by no longer granting exemptions to U.S. sanctions on Iranian
oil exports to eight countries as of next week. Read
here
#Crude Oil Investing
Most analyst did warn traders to trade cautiously since an
increase in supply could impact the prices and we saw the price movement
yesterday. Crude Oil prices encountered significant pressure after the Energy
Information Administration reported a build in crude oil inventories for the
week to April 19. #Crude Oil Investing
The authority said inventories had risen by 5.5 million
barrels in the seven-day period two days after the United States announced it
would be cancelling the waivers it had granted eight oil importers so they
could continue buying crude from Iran. Initially, prices jumped on the news
sparked by worry about supply security, but later they eased down again as the
supply situation globally appeared to be satisfactory.
#Crude Oil Investing
Crude Oil investing tip
Looking at fundamentals, $65 level continues offer
significant support, and the $67.50 level offers significant resistance.
MCX Crude Oil futures will follow WTI crude and we can
expect Crude Oil to trade in a range. Currently, we can assume market to follow
a bullish trend for this week and then we can expect slight correction in the
prices.
I would suggest to enter a short position around 4710 for a
target of 4640 and strict Stop loss of 4750.
If this market break above 4750 then we could also see 4800-4840
in upcoming sessions. Market is heading towards a correction soon and risky
traders could make the most out of it. #Crude Oil Investing
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