WTI Crude Oil prices crossed the $100 market for the first time since May 3rd on 3 catalysts ranging from the Federal Reserve’s announcement of an aggressive QE3 to the unrest in the Middle East and North Africa.
September Crude Oil contracts traded as high as $100.42 before pull back under the $100 level to $99.50 on possible profit taking going into the weekend, however, remains well supported as tensions remained a hot topic in the Egypt and Libya.
Middle East tension was sparked once again this time by video that is viewed by protesters in Libya, Egypt and Yemen as insulting to Islam. In Libya the protesting turned deadly as the U.S. ambassador and 4 others were killed in the embassy.
Looking at the technicals we find the current upward Fibonacci wave from “A” $76.85 to “B” $93.22 with “C” retracement at the 38.2% or $87.01 with price currently trading above the 27% extension level and 61.8% extension target – for WTI Crude Oil price of $103.33.
Other positive technical indicators include buy TTM Scalping trigger as well as upward Relative Strength Indicator (RSI) suggesting a continuation of a the rally in the near term.
Crude Oil's Bottom Line:
Equity only readers can gain exposure to WTI Crude Oil through the United States Oil Fund (USO, quote) ETF that seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The USO will invest in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. It may also invest in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.
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