I assume you read my pre-market thoughts yesterday. I mentioned oil getting some volatility due to economic news. https://www.bloomberg.com/news/articles/2019-07-01/oil-holds-firm-underpinned-by-opec-pact-on-production-cuts
Well that news was OPEC, the EIA report is due today at 9:30 AM CST. If oil continues to have this type of action a lot traders will have to readjust their vacation plans for departure until after oils closing bell today at 1:30 PM CST. Last week crude oil traded up to highs around 60.00 as I forewarned you, but shortly after that the bears immediately gained control of trend and started looking at 58.15 for momentum.
Once the trend was established there was no stopping those bears yesterday until the price reached 56.30. I am still a bear in this market if oil can break below 55.86.
I’ll be looking for selling opportunities down to 55.55 to 55.26 and then eventually to 55.00. 55.00 should act as strong support but if it doesn’t we’ll be in for a great trading day before the holiday and expect oil to fall apart all the way down to 54.00 then finally to 53.31 if this happens oil may very well drag equities along with it so be on the lookout for that. If this happens it will be a wild day on wallstreet.
If the street likes the EIA report and the bulls take control of trend above 56.91 I’ll be looking for a entry above 56.391 that very well might be the trade entry of the day because oil will try very hard to revert back in yesterdays trading range.
If you’re nimble like me about the oil market then you know you can’t get stuck thinking about whats suppose to happen just trade what the market is showing you. Above 56.91 to 57.19, 57.51 to 57.90, 58.01 to 58.15 before running into some resistance at 58.56 I don’t think this is likely to happen but if it does it will dominate the news channels you follow remember you heard it here first.