Breaking News
0

Shale Oil Production Expected To Grow In The U.S.

By IFC Markets (Ara Zohrabian)CommoditiesMar 14, 2018 09:37AM ET
www.investing.com/analysis/technical-analysis-oil--20180314-200297945
Shale Oil Production Expected To Grow In The U.S.
By IFC Markets (Ara Zohrabian)   |  Mar 14, 2018 09:37AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 



The U.S. Energy Information Administration (EIA) reported a possible increase in shale oil production in the United States. Will Crude Oil quotes drop?

In March 2018, the US shale oil production was 6.82 mln. According to the EIA forecast, it will increase by 130 thousand barrels per day reaching 6.95 mln barrels per day in April. At the same time, the total production of all types of oil in the United States will exceed 10 mln barrels per day. Market participants react to such reports, as the EIA expects an aggregate increase in the US oil production to 11 mln barrels per day by the end of this year. This additional for the market 1 mln barrels per day may move WTI quotes down. Their dynamics may be affected by the next data on the US oil reserves, which will be released on Wednesday, March 14. According to preliminary forecasts, the reserves may increase for the third consecutive week, which is a negative factor for the quotes.

OIL
OIL

On the daily timeframe, OIL: D1 is in the triangle. The further price increase is possible in case of the increase in the reserves and the oil production in the US.

  • The Parabolic indicator gives a bearish signal.
  • The Bollinger bands® have narrowed, which means lower volatility.
  • The RSI indicator is below 50. It has formed a negative divergence.
  • The MACD indicator gives a bearish signal.


The bearish momentum may develop in case OIL drops below its last fractal low and the lower Bollinger band at 59. This level may serve as an entry point. The initial stop loss may be placed above the two last fractal highs, the upper Bollinger band and the Parabolic signal at 64. After opening the pending order, we shall move the stop to the next fractal high following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level at 59 without reaching the order at 64, we recommend cancelling the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis

Position - Sell
Sell stop - below 59
Stop loss - above 64

Shale Oil Production Expected To Grow In The U.S.
 
Shale Oil Production Expected To Grow In The U.S.

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Allen Drewe
Allen Drewe Mar 14, 2018 9:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Look at demand. You’re about to see your stop loss triggered.
Reply
0 0
Leo Mu
Leo Mu Mar 14, 2018 8:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wrong prediction.
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fulfilling trading operations under conditions of significant leverage, or relatively little changes of the rate of financial tool (currency pair, index, etc.) can cause significant changes to the customer trading account (proportionally to this leverage) . At movement of the market against the customer position he can incur significant loss of part or the whole deposit. The customer is fully responsible for using his financial resources and choosing the trading strategy. Many financial tools have high volatility and/or have significant intraday time ranges of price changes that define high probability of reception of both fast profits and losses from trading operations.
Continue with Google
or
Sign up with Email