Send me real-time posts from this site at my email

Midday Markets by Mike Paulenoff 6/27 - Oil Testing Multi-Year High

Wednesday June 27th, 2018
by Mike Paulenoff

Crude Oil-- Certainly the elephant in the room this AM is Crude Oil, which is higher by another 1% overnight in reaction to a huge inventory draw of 9 million barrels reported in the API weekly data.

This news comes right on the heels of yesterday's 3% upmove in reaction to news that the Trump Administration is "demanding" that all countries stop buying (importing) Iranian oil by November 4th, which will take supply off of the market-- and Saudi Arabia apparently will not be able to make up all of the potential shortfall.

The market clearly has whipped itself into a post-OPEC bullish frenzy, and later this AM, the API Inventory report will be released. Even if it shows a big draw similar to the EIA data, it is difficult for me to imagine that more buyers will pile into Oil "up here" at +13% off of its June 17th corrective low at 63.40. That said, however, who knows what the algos are capable of after a bullish headline!

From a chart perspective, let's notice that Oil is quickly approaching a full-fledged test of its 5/22/18 multi-year high at 72.90, which must contain the strength to preserve my "top formation" big picture pattern interpretation.

With that in mind, I am thinking that today Oil either will leave no doubt that the post-Feb. 2016 advance from 26.05 still has room on the upside, or it will reverse to the downside in a significant way, leaving behind a major Double Top in the vicinity of 73.00.

My inverse long position in SCO hangs in the balance... Last in SCO is 16.01/02... my stop is at 15.70 Intraday...

Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!

*  I really like Mike's charts and analysis. This is shared with my readers here via MPtrader.com  *


Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

If you liked this article, please click the LIKE (thumbs up) button.

Feel free to leave any comments, question, or opinions.

Follow us and check back occasionally for additional articles or comments.