October crude oil grinded higher in the afternoon hours and managed to close the session slightly higher. Despite the late day advance, October crude oil was still confined inside of Friday's trading range. The market faced conflicting headings during the session, first from weaker Chinese economic data over the weekend that weighed on global oil demand prospects, then on the hopes that the US Fed might pursue another round of quantitative easing at this week's policy meeting. It is possible that the crude oil market drafted a measure of support on growing frustration at the IAEA over Iran's nuclear program. The latest comes as the IAEA requests for access to an Iranian military site to inspect for nuclear weapon development.
Crude dips as market awaits policies from upcoming Federal Reserve meet (Source: Forexpros.com)
Forexpros - Crude oil futures fell in Asian trading on Tuesday as investors sold the commodity for profits, cooling a recent rally that began after poor U.S. jobs data sparked talk the Federal Reserve will stimulate the economy via monetary stimulus measures.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD96.26 a barrel on Tuesday, down 0.29%, off from a session high of USD96.61 and up from an earlier session low of USD95.41.
The U.S. Bureau of Labor Statistics reported Friday that the U.S. economy created a net 96,000 nonfarm payrolls in August, well below market calls for 125,000 jobs.
The weak jobs numbers fueled already growing sentiment that the Federal Reserve will roll out a third round of quantitative easing at two-day monetary policy meeting that starts Wednesday.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and hiring.
Chart Reading :
Bollinger band reading : correction range bound market.
MACD Histogram : recovering.
Support : 94, 92, 91.5 level.
Resistance : 97, 98, 100 level.
Idea : Long at support, must set stop loss few points below support. Short at resistance, must set stop loss few points above support.
No comments:
Post a Comment