4 hour timeframe
There are a lot of factors affecting the price of all types of oil and in most cases, they are contradictory. For example, the US sanctions against Iran and Venezuela clearly reduce the supply on the oil market. The trade war between China and the States could potentially reduce energy demand. Oil reserves in America are growing, despite the record demand for gasoline among motorists since the holiday season began. Meanwhile, Donald Trump expressed his confidence that Iran wants to make a deal with the United States. Also, the US leader noted that the States are not going to change the existing regime in Iran. They just want to completely abandon the development of nuclear weapons. We believe that such a large number of factors only confuse all cards to traders. By and large, the price depends mainly on supply and demand. Moreover, whatever geopolitical risks are considered by the market, the price of oil will fall if demand is lower than supply. Official figures say that oil reserves in the United States are growing that makes all other factors to be secondary.
Thus, we recommend that market participants now pay more attention to technical factors that clearly indicate a downtrend. The closest report on the change in crude oil reserves in the United States may change the current trend, as there are also prerequisites for a shortage of oil in the market, which clearly indicate a downtrend. he closest report on the change in crude oil reserves in the United States may change the current trend as there are also prerequisites for a shortage of oil in the market, which clearly indicates a downtrend. The closest report on the change in crude oil reserves in the United States may change the current trend as there are also prerequisites for a shortage of oil in the market.
At the moment, the #CL tool is in a downward movement with the target support level of $53.57 per barrel. An upward turn of the MACD indicator will be a signal to reduce short positions and signal at least the beginning of the upward correction.
In addition to the technical picture should also take into account the fundamental data and the time of their release.
Explanation of the illustration:
Tenkan-sen – the red line.
Kijun-sen – the blue line.
Senkou Span A – light brown dotted line.
Senkou Span B – light purple dotted line.
Chikou Span – green line.
Bollinger Bands indicator:
3 yellow lines.
Red line and histogram with white bars in the indicator window.