Start Trading Now Get Started
Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Crude Oil Price- Oct. 14, 2013

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

The WTI Crude Oil markets fell during the majority of the session on Friday, but as you can see found enough support right around the $101 level in order to bounce and form a nice looking hammer. This hammer is at the bottom of a consolidation area that goes all the way up to $104, so I feel that this market is ready to take off to the upside relatively soon. That being said, the easiest way to trade this market is to simply wait until we get a daily close above the $104 level, as that would signify a return to the previous consolidation area, and perhaps target the $108 level before it's all said and done.

Going forward, I don't see any chance to short this market simply because the $100 level almost have to be supportive based upon the large round psychological number aspect of it, and longer-term charts that show that the support should extend all the way down to the $99 level, which is the beginning of the very noisy part of this chart. Because of that, this is a "buy only" market for me at the moment.

The Federal Reserve and the value of the US dollar

At this moment, I don't believe that supply and demand has even a thought as far as this market is concerned. I believe it comes down to the Federal Reserve, and whether or not they can taper off of quantitative easing. With a lack of employment numbers in the United States due to the US government shutdown, there are a lot of questions out there and people still wonder whether or not the Federal Reserve is going to be able to taper off of quantitative easing anytime soon. If that's possible, then it brings up the value the US dollar, which should in turn punish the value of oil markets. On the other hand, if it looks like the Federal Reserve cannot taper anytime soon, that should put a bid back into the oil markets under those circumstances.

Crude Oil Price 101413

Christopher Lewis
About Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
 

Most Visited Forex Broker Reviews