Crude Oil Approaches Major Resistance!
Crude oil futures are currently facing a confluence of factors that could significantly impact their trajectory in the coming months. One of the most significant developments is the potential extension of voluntary oil output cuts by OPEC+ into the second quarter, with the possibility of extending them until year-end.
Fundamentals:
On the monetary policy front, Fed funds futures have shifted their expectations for interest rate cuts from March to June and July. This change reflects the Federal Reserve's cautious approach to monetary policy amid signs of economic strength.
Speaking of economic strength, the latest reading from the Atlanta Fed GDPNow model suggests a robust growth rate of 3.2%, surpassing the expected 2.9%. A stronger economy typically supports higher oil prices, as it indicates increased demand for energy.
Technicals:
Crude oil futures are currently facing major overhead resistance in the range of 79-79.95. A break and close above this resistance level range could signal a bullish trend for oil prices.
In summary, the potential extension of OPEC+ oil output cuts, coupled with major overhead resistance and a stronger economy, could serve as supporting catalysts for crude oil futures in the near term. Investors and traders should closely monitor these developments for potential trading opportunities.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Fundamentals:
On the monetary policy front, Fed funds futures have shifted their expectations for interest rate cuts from March to June and July. This change reflects the Federal Reserve's cautious approach to monetary policy amid signs of economic strength.
Speaking of economic strength, the latest reading from the Atlanta Fed GDPNow model suggests a robust growth rate of 3.2%, surpassing the expected 2.9%. A stronger economy typically supports higher oil prices, as it indicates increased demand for energy.
Technicals:
Crude oil futures are currently facing major overhead resistance in the range of 79-79.95. A break and close above this resistance level range could signal a bullish trend for oil prices.
In summary, the potential extension of OPEC+ oil output cuts, coupled with major overhead resistance and a stronger economy, could serve as supporting catalysts for crude oil futures in the near term. Investors and traders should closely monitor these developments for potential trading opportunities.
Check out CME Group real-time data plans available on TradingView here: tradingview.com/cme/
Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs tradingview.com/cme/
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
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