Headlines continue to lead the September Crude Oil contract higher as Russia says they are willing to hold talks with OPEC to stabilize prices. The Russian energy minister says they are talking with Saudi Arabia to develop a framework for cooperation either on a multi-party structure or bilaterally.
They will try to get the OPEC – NOPEC talks on the front burner because they are looking to achieve market stability. The potential talks are causing panic stricken shorts to get out of their positions. Yesterday’s rally saw Crude Oil overtake the 100 DMA (44.88) and it powered its way to the 50 DMA (45.93) where it met resistance and stalled.
If Crude oil can overtake the 50 DMA, the next resistance is at 46.49 (TL) and 46.93(the July 12thhigh). Support will be at the 100 DMA and then the August 11th high (43.86). Option expiration is on Wednesday, August 17th and this could add additional volatility to the market.
- High: 45.93
- Low: 44.38
- Last: 45.71
Daily Pivot Points for 8/16/16
- R2 46.89
- R1 46.30
- PIVOT 45.34
- S1 44.75
- S2 43.79