The market is feeling perky and chipper today and risk assets are benefiting. WTI is one such asset and the 1.69% gain today is a very sizable move. It’s the biggest since 8th April (sorry Petar
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You can throw a handful of darts at the usual reasons and they’ll all count.
- Good Chinese export data and oil import data
- Libya concerns
- Payrolls pointing to growth
- US petroleum demand at the highest since Feb
- US capacity worries and seasonal shutdowns
- OPEC meeting on Wednesday to discuss production
You name it and you can tie it to oil.
Once again we’re approaching the short term channel top and that may slow proceedings after such a sizable move. 104.86 is the April trendline and 106 marks the longer term Oct 2013 resistance line (I’m using BBG charts as my main futures charts haven’t switched over to the new contract month yet).
WTI crude daily chart 09 06 2014
You boys and girls know my mantra for trading oil and that’s to play the extreme edges. I won’t be touching the shorter resistance level as if the market is betting on growth it won’t be a one day event but will likely last until something pulls the rug out. The 106 level is the first area I’d look at a short and may be enticed to run a position up to that resistance before 110.
