The energy sector is on track to post a 12% second-quarter gain as crude prices finish Q2 with their fourth consecutive quarterly rise. The move is notable given the volatile environment, and derives significantly from fears of Iranian supply disruptions, but it could prove vulnerable to any intensification of the trade war.
Day trade
Trade view / 12 September 2017 at 10:13 GMT

Trading the range in oil

Director / PIA-First Limited
United Kingdom
Instrument: OILUSOCT17
Price target: 46.00
Market price: 47.85

As oil continues trading within a large choppy range, price action seems to be drifting lower after the Hurricane Irma risk subsided. Although we expect this move lower to extend, the downside should be limited. With multiple timeframes trading within or around respective Ichimoku clouds, the choppy trade should continue.

The daily chart highlights mixed signals with bearish engulfing followed by bullish piercing (hammer-like) candles:
Source: Saxo Bank

The four-hour chart highlights rally stalling at 50% fibonacci retracement level and possible AB=CD correction lower:

Source: Saxo Bank

The hourly chart indicates yesterday's correction higher has stalled and a further test of support is likely after posting a bearish evening Doji star:
h Source: Saxo Bank


Entry: sell OILUSOCT17 at current levels ($47.85).

Stop: break above $48.50.

Target: $46.65 and $46.00/b.

Time horizon: day trade

— Edited by Clemens Bomsdorf

Non-independent investment research disclaimer applies. Read more
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