Lower Inventory Turns Crude Oil Trend Up
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Friday, October 1, 2010
, Posted by Usman Ali Minhas at 10:41 PM
A lower than expected weekly inventory report sent shorts scurrying for cover while turning the main trend to up on the daily and weekly crude oil charts. Also boosting oil prices were slightly better equity markets, a weaker U.S. Dollar and strong manufacturing data from China.
Despite the weaker outlook for the U.S. economy, momentum buyers drove prices to their highest levels in seven weeks. Earlier in the week, prices were driven up on larger-than-expected drawdown in crude inventories and surprise drops in gasoline and distillate stocks.
News that China reported gains in the manufacturing sector eased concerns of a potential economic slowdown helped underpin prices on Friday.
Technically, November crude oil changed its trend to up on the daily and weekly charts with a move through a swing top at 78.86 and a Fibonacci retracement level at 79.17.
Weekly downtrending Gann angle resistance is at 81.66 and 82.79 the week-ending October 8.
A shift from summer to fall blend fuels may have prompted the drop in crude inventories this week. Things may return to normal this week, possibly increasing inventories and weakening prices.
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