Crude Oil Forecast for August 11, 2017 and Trade Idea
Our last trade of CRUDE OIL was SHORT TRADE targeting 48.90 and we succesfully closed the trade. We were waiting to check the critical levels and price broke the important Fibonacci support on H4 Chart.
Crude Oil failed to hold the 50 per barrel level, falling nearly 2% topping at $50.22 earlier in the session. Gains came following an OPEC report, which upped its demand forecast for its oil in 2018 by over 200k barrels per day to 32.42 million barrels per day. At the same time, the cartel revealed that its July production was 32.87 million barrels per day, above its increased 2018 demand prediction. Hard to see how inventory imbalances will be reduced with this strategy if OPEC continues to overproduce.
We have two Fibonacci support levels below the 48.00 USD . 47.60 is the first support level which is the Fibo 61.80 % of the downside movement of April 18th.
Second support level is 46.95 of the Fibonacci Lines.
Momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. The reversal in prices came as OPEC confirmed reports that its crude oil production increase last month, reporting a daily rate of 32.869 million barrels, up by 172,600 barrels per day.
Our Trade Idea for Today
Short @ 48.10
TP1 : 47.60
TP2 : 47.00
Our Trade Idea Midterm :
If the price breaks the 47.00 support 46.10 and 45.55 will be the next targets.