Oil Drops Below $67 On Demand Worries

[Dickson Yap]

Crude oil finished lower again on Monday, as lower global equities raised concerns about energy demand. Oil was also hurt by a stronger U.S. dollar, although it ended the session off its lows of the day

Light sweet crude plunged to $66.75 per barrel, down 76 cents on the session, extending the sharp drop seen on Friday. Prices fell as low as $65.23 a barrel earlier in the session.

 

The greenback rallied versus its European rivals amid lower risk appeal. The dollar rose to a 19-day high versus the euro and reached a monthly best against the pound. A drop in global stocks sent traders flocking toward lower-yielding currencies.

Oil climbed off its lows in the afternoon, boosted by an encouraging housing report. The National Association of Home Builders released its report on homebuilder confidence in the month of August, showing that its homebuilder confidence index rose to its highest level in over a year.

This morning, the New York Fed said its general business conditions index rose to 12.1 in August from a negative 0.6 in July, with a positive reading indicating an expansion in the manufacturing sector. Economists had been expecting the index to increase more modestly to 3.0.

Investors also looked ahead to Wednesday's Energy Department inventory report. Last week's data showed that inventories increased by 2.5 million barrels. Total motor gasoline inventories decreased by 1.0 million barrels.

Crude oil finished lower again on Monday, as lower global equities raised concerns about energy demand. Oil was also hurt by a stronger U.S. dollar, although it ended the session off its lows of the day. Light sweet crude plunged to $66.75 per barrel, down 76 cents on the session, extending the sharp drop seen on Friday. Prices fell as low as $65.23 a barrel earlier in the session.

[Trademore]

My opinion about crude oil. 



Adios..

[swingtrader188]

The crude oil rally looks like a corrective pattern to me because of the many overlapping section.
This is my take on crude oil using the multiple time frame momentum, pattern and price analysis. My higher time frame is the daily data.
The daily stochastic is bearish suggesting continuation of the downswing.
A short sale swing trade set-up would be in place if 4-hr chart form a corrective pattern to a Fibonacci 50-61.8% retracement (86.55-87.03) of the downswing and 4-hr stochastic made a bearish reversal.

[swingtrader188]

The crude oil rally looks like a corrective pattern to me because of the many overlapping section.
This is my take on crude oil using the multiple time frame momentum, pattern and price analysis. My higher time frame is the daily data.
The daily stochastic is bearish suggesting continuation of the downswing.
A short sale swing trade set-up would be in place if 4-hr chart form a corrective pattern to a Fibonacci 50-61.8% retracement (86.55-87.03) of the downswing and 4-hr stochastic made a bearish reversal.

Crude oil rallied to the 38.2% retracement of the previous downswing, made a stochastic bearish reversal then declined to take out the previous low. I could not catch it with my trading strategy because I was waiting for a ABC corrective rally to the 50-61.8% retracement zone.