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Latest crude oil – sold in support as recession fears increase


Crude oil price, chart and analysis

  • Crude oil continues its recent fall.
  • Recession fears the latest market driver.

For a list of all market-moving data releases and events, see the techlives Economic Calendar

Over the last few weeks, recession fears have surpassed inflationary fears as the main driver of price action in financial markets with global central bankers to market experts fearing the worst for the months ahead. A series of excessive interest rate hikes by several central banks, in an effort to temper red-hot price pressures, are set on, or are already weighing on, global growth prospects, as central banks see combating inflation as their overriding priority. As recession fears grow, oil will continue to aim lower.

The daily Brent Ru chart shows a topping pattern earlier this month with the $ 123.50 / bbl. level four tested and rejected. Price action has since built up a declining channel and broke below the 20- and 5-day simple moving average, with both fractions lowering immediately confirmed. The price of Brent is now heading for a zone of previous horizontal support between $ 100.83 / bbl. and $ 95.60 / barrel. with the 200-day moving average also appearing at the bottom of this series. The $ 100 / bbl. psychological level also sits just below the top of the support range and should offer the first real test for oil bears.

Psychological levels and round numbers in Forex Trading

Brent Rough Daily Price Card – June 23, 2022

If we look at US crude oil, IG shows retail data58.24% of traders are net long with the ratio of traders long to short at 1.39 to 1. The number of traders net long is 11.49% higher than yesterday and 37.47% higher from last week, while the number of traders is net short. is 14.91% lower than yesterday and 46.97% lower than last week.

We usually take a contradictory view of crowd sentiment, and the fact that traders are only tall suggests Oil – US crude oil prices could continue to fall. Traders are further net longer than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger oil – US crude bearish contrarian trade bias.

What is your view on Crude oil – bullish or bearish ?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @ nickcawley1.

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