Crude Oil Tumbles Into the 30’s

cl-082415

Crude futures hit a new six-and-a-half year low of $38.70 following a more-than 3.5% decline. The decline reflects global growth concerns as China-led global stock dive intensifies. There has reportedly been a sharp rise in non-commercial short positioning, according to the most recent commitment of traders report. Other commodity prices are also down sharply today, while even gold is showing moderate losses, apparently as a consequence of some investors having to sell to cover margin calls.

Crude oil price broke through trend line support on Friday breaking through the $40 dollar level for the first time in 6-years. The increase in drilling rigs reported by Baker Hughes led to the initially selloff below the psychological barrier.

Technically, crude oil prices broke through trend lows a momentum turned negative. The MACD (moving average convergence divergence) has generated a sell signal as the spread (the 12-day moving average minus the 26-day moving average) crossed below the 9-day moving average of the spread. The index moved from positive to negative territory confirming the sell signal.

The post Crude Oil Tumbles Into the 30’s appeared first on Forex Circles.

Source:: Crude Oil Tumbles Into the 30’s

About the Author
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC. Our mission is to maximize the value our clients derive from their most precious commodity, "Time"! By offering advanced and innovative services, optimal customer care and perpetual devotion to our clients, we will ensure that their individual needs are always met as markets continue to evolve over time. Visit ForexTime to learn more www.forextime.com [space height="20"] [social type="facebook"]https://www.facebook.com/ForexTime[/social] [social type="twitter"]https://twitter.com/ItsForexTime[/social] [social type="google-plus"]https://plus.google.com/u/0/+ForextimeFXTM/posts[/social] [social type="youtube"]https://www.youtube.com/user/ItsForexTime[/social]

Related Posts

Leave a Reply

*