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USOil continues its move upwards

Market Analysis
2016-12-21_15-16-06

USOil, Daily              

US Oil prices have logged a nine-day high of $53.77, since settling to $53.58, which is still a net 0.5% up on the day. Prices were boosted by API data that showed a 4.15 mln barrel draw on U.S. crude inventories in the latest reporting week. Crude prices are now showing the biggest December gain since 2010 and this despite the USD index reaching a 14-year high this week. The next focus will the EIA weekly inventory report, due at 15:30 GMT, where a Reuters poll found a consensus forecast for a 2.5 mln barrel draw, which would the fifth straight week of declining stocks.

The price is looking a little over stretched and could be about to retrace, as the RSI is trading over 70 and the MACDs have crossed. However, I remain LONG USOil from my post earlier in month (December 6) with an initial Target 1 at $56.00 and longer term Target 2 at  $62.00.

 

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Stuart Cowell

Market Analyst

HotForex

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