WTI gets rejected from the 51-55 range | 05/10/17

[IronFX The Global Leader in Online Trading]( 5th October 2017 [start trading]( [open demo account]( All trading involves risk. It is possible to lose all your capital. WTI gets rejected from the 51-55 range - Oil prices tumbled yesterday, extending their losses from earlier this week, amid signs of increasing production from OPEC members. In particular, a recent Bloomberg survey showed that Libya and Nigeria, both of which are exempted from the OPEC and non-OPEC accord to limit oil production, raised their output notably in September. Another reason for the latest pullback in prices may be the absence of escalation in the Turkish-Kurdish standoff. The Turkish President has not followed through with his recent threats to disrupt the oil exports of Iraqi Kurds and thus, one risk of supply disruptions seems to be fading. - Since all of these appear to be priced in already though, we believe oil traders are likely to begin turning their attention to the upcoming OPEC and non-OPEC gathering in November. We think oil prices are likely to become increasingly more sensitive to comments from officials as we approach that meeting. Although it’s still several weeks away, experience from the recent gatherings suggests that market expectations around a potential accord build up well ahead of the actual meeting. - WTI has been in a sliding mode since the 28th of September. Most importantly, on the 2nd of October the price fell back below the key territory of 51.50 (R2) and below the short-term uptrend line taken from the low of the 31st of August. In our view, this has turned the short-term outlook to negative and as such, we expect the bears to take charge again soon. Even though the price rebounded somewhat during the European morning Thursday, as long as that recovery remains limited below the 51.50 (R2) barrier, we would treat it as a corrective phase. If sellers manage to take control below 51.50 (R2), we would expect them to aim for the 49.70 (S1) zone, where a decisive dip may pave the way towards our next support level of 48.90 (S2). [Image title] - Switching to the daily chart, we see that the dip back below 51.50 (R2) confirmed our view that the 51.50 (R2) – 55.30 zone is the range where US shale producers may be attracted to increase production and thereby put a lid on any oil gains. The fact that black gold reversed its prior short-term uptrends after approaching or entering that range enhances the case for the price to continue trading lower in the foreseeable future, we believe. Prepared by: Charalambos Pissouros and Marios Hadjikyriacos [Facebook]( [Linkedin]( [Instagram]( [Twitter]( [Google+]( [YouTube]( - Tel: +44 (0) 20 3282 7777 - Email: support@ironfx.com High Risk Trading Warning: Our services include products that are traded on margin and carry a risk of losing all your initial deposit. Before deciding on trading on margin products you should consider your investment objectives, risk tolerance and your level of experience on these products. Trading with high leverage level can either be against you or for you. Margin products may not be suitable for everyone and you should ensure that you understand the risks involved. You should be aware of all the risks associated in regards to products that are traded on margin and seek independent financial advice, if necessary. Please read IronFX’s Risk Disclosure statement. Licences and Authorisations IronFX Global Limited is authorized and regulated by CySEC (Licence no. 125/10) Group Licences and Authorisations 8Safe UK Limited is authorized and regulated by the Financial Conduct Authority (FCA no. 585561) GVS (AU) Pty Limited is authorized and regulated by ASIC (AFSL no. 417482) IronFX does not offer its services to residents of certain jurisdictions such as USA, Iran, Cuba, Sudan, Syria and North Korea. [Unsubscribe](