WTI Oil 10/7/2019

7. Okt. 2019

Taking a look at crude this a.m. I dont trade oil but I enjoy keeping an eye on the charts as I am employed in the industry and the price of oil effects the work load at the shop I work at. We are trading around 53.50 which means we have pretty much seen a full retrace since the attack on the oil facility in Saudi Arabia. I threw a Fib speed resistance fan onto the chart last week and it is working like a charm. These candles seem to really show the fan respect. I havent looked at oil much so I am still trying to figure out if the charts work in a similar way to Bitcoin and from what I can see they do have plenty of similarities. We had a nice reversal candle I pointed out on the chart and since we reached that low (around 51$) We saw a healthy bounce to where we are trading now at 53.50. We were in a steady down trend since 9/23/2019 but on 10-3-2019 we had a reversal candle (which I pointed out on the chart) and we seem to have reversed course at that point and started gaining ground once more. Question is will the price continue to rise? If it does the first level of resistance I can see is around 54.50 where the candles found resistance and support just recently (.618 fib) We are also above the cloud on this chart which is bullish. We also made it back above the 50 MA for the first time since late September a few days ago. That 200 MA is still above our heads though so we are not quite out of the woods yet. If it was the Yemen rebels that attacked the Saudi oil facility I expect they will not give up on targeting these facilities. These Yemeni rebels get weapons from Iran and with the way the middle east is looking right now Iran may be drawn into a conflict with Saudi Arabia even if they are not the ones that perpetrate an attack. I have a feeling Yemeni rebels may prefer if Iran gets drawn in the conflict. Why wouldnt they? They are severely outmatched right now and even though these Yemeni rebels are having some success at the end of the day people in Yemen are starving thanks to Saudi blockades. Something has got to give. Why am I telling you all this? Well whenever there is a conflict involving Saudi Arabia oil prices are effected. Saudi Arabia is a top oil producer on the planet. Im sure Saudi is looking out for an attack on their oil facilities now and it may be tough to catch them off guard like the first attack did. But there is still the Persian gulf. If Iran or Yemen rebels start dropping mines into the Straight to Hormuz it can severely effect the flow of new oil to the rest of the world and will likely lead to another war in the middle east. Its a powder keg over there and oil is bound to gain ground with any conflict that happens. Keep an eye on oil. It could surprise us all.