Today we will discuss about OIL, and related trade opportunities. I have been bullish on the OIL for quite some time now, as there is a bullish divergence one the daily chart. I think the OIL might reach 102.00 or 103.00 in the medium term, as shown in the daily chart below. However, there are some bearish signs emerging in the short term.
Looking at the 4 hour chart of OIL, there is a bearish divergence. This means that there might be a pullback in the short term. There is a strong support at around the 97.00 level, as plotted on the chart shown below. If the OIL manages to break this support and holds below it, then we will enter a small size sell trade. Remember, we remain bullish in the medium term, but may look to sell in the short term.
Initial target should be around the 96.00 level, and final target could be around the up-move trend line as plotted on the 4 hour chart shown below. Stop should be placed above the last high.
Reviewing yesterday’s events and trades
Yesterday, in the European session, Euro zone’s industrial production data was released, which registered a decline of -1.1%. Later in the NY session, the US retail sales data was released. The outcome was better than expected as the retail sales gained 0.7% in November, and core retail sales also jumped by 0.4%. The US dollar traded higher after the data release, and the pairs such as EURUSD, GBPUSD and AUDUSD declined. The US business inventory figure was also released, which missed the expectations of 0.3%.
Fundamental Outlook for the day
Today, the US Core Producer Price Index (PPI) data will be released. The market is expecting a rise of 0.1% in November against the 0.2% in October. If the outcome is positive, then we witness some more gains for the US dollar. Other than this, there is no major economic release scheduled later during the day. Today is the last trading day for the week, so I would not advise anyone to get into any unnecessary trade. Next week, a lot of fundamental events are lined up, which can create a lot of trading opportunities.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, USDJPY, EURGBP, USDCAD, GBPCAD, AUDNZD, EURCAD and EURCHF.
Get it HERE: Vladimir’s Markets Forecast
Happy weekend friends. Trade safe!
