Crude oil continues its consolidation as markets await the Fed announcement.
The crude oil contract closed 0.92% lower on Tuesday after a failed rally and an attempted breakout above the key $68 level. Once again, the market extended its short-term consolidation amid geopolitical uncertainty and stock market volatility. Prices basically continued moving sideways following declines in January and February.
Today, oil prices are virtually flat ahead of the important FOMC release at 2:00 p.m. Markets will likely experience high volatility later in the day.
Conclusion
Crude oil attempted to break above recent local highs yesterday but failed once again, pulling back below $68.
The market is now awaiting the key Fed release today, along with the inventory report at 10:30 a.m.
Is this a good time to open a short position? I don't think so - the market is approaching strong medium-term support levels and could move sideways or rebound.
For now, my short-term outlook is neutral.
Here’s the breakdown:
- Crude oil failed to break above the $68 level; the Fed release is now in focus.
- In my opinion, the short-term outlook is neutral.
The full version of today’s analysis - today’s Oil Trading Alert - is bigger than what you read above, and it includes the current Crude Oil futures contract position. I encourage you to subscribe and read the details today (with a single-time 7-day free trial). Oil Trading Alerts are also a part of our Diamond Package that includes Gold Trading Alerts and Stock Trading Alerts.
And if you’re not yet on our free mailing list, I strongly encourage you to join it - you’ll stay up-to-date with our free analyses that will still put you ahead of 99% of investors that don’t have access to this information. Join our free oil newsletter today.
Thank you.
Paul Rejczak,
Stock Trading Strategist