Oil – up up and away?
Is the bottom in on Oil? Bloomberg seem to think so, giving the following reasons:
- Speculative covering of short positions at the fastest pace on record.
- Hedge funds reduced their short positions in West Texas Crude by 32% in the weekend ending 21st of April
- A record drop in rig drilling has reduced production while demand has increased. US drillers have 56 % of their rigs idle since October which has helped reduce crude production.
- The conflict in Yemen has also driven up the price of Oil.
The charts indicate that the bulls have the ball in oil for now.
Where are the shorts likely to get involved? The longer terms charts indicate the $68 area as a level where the longs might cover and we may see some short term selling.
Oil – Update Tuesday 28th of April
The 64.50 price seems to be the level traders are using to define risk. Above this price, buyers have the ball, below we might see some further downside.
Bitcoin – drops over the weekend. Further downside this week?
The half way back of the move down from early April held at the end of last week and it looks like Bitcoin will retest the recent lows.
If these lows fail, the next major support level is 159. We are also making lower lows and lower highs in a downward channel.
BTCUSD – Update Tuesday 28th of April
Bitcoin still range bound and at resistance. BTC needs to clear the recent highs before the buyers really have this.
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