Gold Market Wire
News, analysis and commentary for gold traders and investors
Crude Oil Update
Crude Oil Update
July 27, 2022 - (Gold Market Wire) - SPR releases, Cushing draw downs...they all have their roles in short term trading, and if repeatedly sustained in one direction can affect real fundamentals, but the market, as we presently have it, is still adhering to the technical dimension. Our Channel and overhead resistance kept trouble at bay yesterday, while the larger picture, for us, remains that this is a market that is having trouble selling off to any serious extent...but is following the technicals well. While the downtrend is fending off the bulls, we're stuck on the sidelines. Our continued patience is paying off, however, as we drift lower.
The reason we are still seeking a set-up for length is that there are simply to many bullish factors, from potential war conflagration around the world to the increasingly important restrictions on field development and processing, not to mention pipeline politics, to allow the market to sell off. There are a multitude of potential flash points within the world of energy that could send prices higher in very short order. Pelosi's coming trip to Taiwan isn't going to help anything. Right now, any serious and sustained outage in the world energy complex could ignite the march to higher prices.
There is, as usual, the issue of signal vs noise. Yesterday was a prime example. Lots of news generated noise... followed by the signal that we weren't ready to move higher, yet. The close is what proved it - as it often does. That's why so many people rate Market on Close orders (MOC). Trading with the close is one way to filter signal from noise.
As we head into the end of the week, we would still ask our usual question - "Can the market really go home short on a Friday?"