Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

Trends & Analysis
News

Gold loses some shine after hitting record highs

News

Avoid the tech wreck with PayPal?

News

Week Ahead Preview: 22nd of April

News

P&G shares rise despite Q3 sales miss

News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

Asset Watch

Is crude on a collision course?

Tuesday, August 14, 2023

While stocks and bonds have been poor performers lately, commodities have benefited from the soft-landing optimism. And with crude oil leading the pack, the economic lynchpin has gone from the outhouse to the penthouse. However, as critical price levels collide, we may witness a major move in the days ahead.
The small arrows below show how ~$83 switched from support to resistance following the November 2022 breakdown. Since then, crude has suffered two failures as it attempted to surpass the key level in 2023.
Crude has hugged its 10-day moving average since the June breakout and intraday dips have been bought with little hesitation. But, with 10-day MA support at $82.23 and medium-term resistance near $83, crude must decide soon whether the uptrend will continue.

If not, we could see a repeat of April’s failure. The annotation at the bottom shows how crude demonstrated similar behaviour by bouncing off its 10-day MA during intraday pullbacks. Yet, when 10-day MA support collided with monthly resistance, the latter won, a breakdown followed, and the 10-day MA became resistance en route to new intraday lows. This means monitoring traders’ reactions to these levels is paramount this week.

So, will the third time be a charm for crude? Or will another rejection be followed by a dip below the 10-day MA?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.