Account

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

OR

Already have an account?

Account

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

Add funds to your ADSS account

Trending markets
TradingView pricing is indicative
Trends & Analysis
News
Nike shares slide despite strong earnings
News
Should we be worried about the S&P 500?
News
US stocks recover sharply after weeks in the red
Trends & Analysis
News
Nike shares slide despite strong earnings
News
Should we be worried about the S&P 500?
News
US stocks recover sharply after weeks in the red

Add funds to your ADSS account

Trending markets
TradingView pricing is indicative

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

Asset Watch

Will crude barrel ahead to new 2022 highs?

 

Monday, June 6, 2022

It’s been an eventful few days for crude, with European Union leaders agreeing last week to ban 90% of Russian oil by the end of 2022. “The European Council agrees that the sixth package of sanctions against Russia will cover crude oil, as well as petroleum products, delivered from Russia into Member States, with a temporary exception for crude oil delivered by pipeline,” the Union said in a statement.

As expected, traders reacted and sent WTI soaring to nearly $120 per barrel. That lead to profit-taking, which resulted in crude dropping to nearly $114 per barrel.

So how should traders view the market now?

WTI certainly appears to be in an uptrend, and higher prices are currently the path of least resistance. For example, crude’s 10-day moving average has crossed its 20-day moving average from below. And the last three times the bullish MA cross occurred, crude’s rallies lasted two months or more. Therefore, with the most recent cross occurring on April 26, we may only be halfway through this medium-term rally.

As a result, it’s an interesting set-up. If crude can recapture $116.82 – a level that coincides with the late March and May 2022 highs – there is little technical resistance on the way to $130. Likewise, if a pullback occurs and the 10-day MA ($111.43) and 20-day MA ($109.10) hold, a breakout above $116.82 seems more likely than not.

So will the fourth time be a charm?


Site by Pink Green
© ADSS 2022


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.