Crude oil tested the $ 40 mark and closed at $ 41.
Prices are trading in the range of $ 40 to $ 50
in the last 15 trading sessions.
Prices have taken support at $ 40 mark but the bias seems
to be on the lowwr side.
Economic data of oil consuming countries continue to
be weak.
US jobless claim climbed to 26 year high at 626 K.
Unemployment rate is set to increase to 7.5 %.
BOE has cut the bench mark interest rate by 0.50 bps
to 1 % .ECB has kept its rates unchanged.
Dow Jones index closed firm yesterday and is at its
bottom or crucial support of 7882.
BOth equity and crude are at its crucial support.
Stocks of crude oil has gained again this week .
Stock is said to be 50 million barrels higher than last
year.
The clearance of $ 925 billion bail out package can also
revive the market sentiment.
But it is too early to be on the buy side.
Crude continues to look bearish.
OUTLOOK
Crude oil is trading in the range which is getting narrower by
the day .The current range in which it is trading is
$ 42 to $ 39.
Price is testing the $ 40 mark in almost every session.
A close below $ 40 could lead to a downside of $ 35
in the coming sessions.
We continue to remain bearish on the commodity targetting
$ 35 in the coming sessions.
No comments:
Post a Comment