Crude Oil Worth Forecast: Delta Variant Issues Spark Sharp Reversal

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Crude Oil Worth Forecast: Delta Variant Issues Spark Sharp Reversal

Crude Oil Worth Outlook:Crude Oil Worth Forecast: Delta Variant Issues Spark Sharp Reversal - The Macro SetupCrude oil suffered


Crude Oil Worth Outlook:

Crude Oil Worth Forecast: Delta Variant Issues Spark Sharp Reversal – The Macro Setup

Crude oil suffered a pointy reversal to start out the week as worries concerning the delta variant of the coronavirus sparked demand issues. A resurgent US Greenback on the again of protected haven demand was seemingly one other contributing issue to latest crude oil weak spot and the basic forces have seen value crater beneath a key technical degree. Derived from the pandemic lows in March, the trendline in query had helped information crude oil larger for months and its latest failure may open the door to deeper losses for the commodity within the days forward.

Crude Oil Worth Chart: Each day Time Body (July 2018 – July 2021)

Crude Oil Price Forecast: Delta Variant Concerns Spark Sharp Reversal - The Macro Setup

Whereas the tempo of declines has slowed, harm to the technical panorama has been dealt and the clear break beneath the March 2020 trendline constitutes a big growth for technicians. With arguably an important trendline on the chart damaged, subsequent help turns into much less formidable and, ought to crude reverse larger, prior help will seemingly function resistance. Thus, the shift within the basic panorama has been adopted by an identical downgrade within the technical panorama and additional losses within the days forward seem an actual risk.

Crude Oil Worth Chart: 1 – Hour Time Body (Could 2021 – July 2021)

Crude Oil Price Forecast: Delta Variant Concerns Spark Sharp Reversal - The Macro Setup

With that in thoughts, secondary help turns into all of the extra essential and areas that may provide help to bulls appear few and much between till the $62 to $60 space the place the commodity’s Could swing low resides alongside the 200-day easy and exponential transferring averages. On the underside of the vary is the psychologically-significant $60 mark that may function the subsequent “line within the sand” standing in the way in which of one other important leg decrease.

On this week’s episode of The Macro Setup myself, Man Adami and Dan Nathan talk about the case for a continuation decrease in crude oil and the varied ranges to look at amongst different value motion unfolding out there. Click on on the video hooked up to the highest of this text to look at the complete episode. Within the meantime, comply with @PeterHanksFX on Twitter for updates and evaluation.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and comply with Peter on Twitter @PeterHanksFX

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