Commodity Trading Tips for Crude Oil by KediaCommodity

Ajay Kumar Kedia 4 September 2014

Crude-Oil Crudeoil settled up 1.80% at 5767 rebounding from a more than seven-month low yesterday, as prospects of a ceasefire in the ongoing crisis between Ukraine and Russia gained strength. The sharp rise comes ahead of the weekly crude oil reports from the U.S. EIA weekly inventory report. The report has been rescheduled for a day later due to the U.S. Labor Day holiday last Monday. In the ongoing conflict in eastern Ukraine, President Petro Poroshenko initially said Russian President agreed on a permanent ceasefire, but Kiev later retracted the statement. The retraction came after Moscow said President Putin had not agreed to a ceasefire as it was not directly involved in the conflict. Meanwhile, media reports suggest Islamic militants may have stolen about a dozen commercial planes from Tripoli Airport last month to use them in terror attacks. On Wednesday, crude oil futures ended down below 5700 level, snapping a four-day winning streak, amid concerns over likely fall in demand on the back of a weak Chinese factory data outweighing worries about the situation in Ukraine and Libya. In economic news from the U.S., a report from the Commerce Department showed factory orders to have surged up by 10.5 percent in July, after climbing by an upwardly revised 1.5 percent in June. On Thursday, the ECB will announce its monetary policy. Hopes about fresh stimulus from the ECB have risen after eurozone retail sales declined by a more than expected 0.4 percent in July. Technically market is under short covering and getting support at 5689 and below same could see a test of 5612 level, And resistance is now likely to be seen at 5811, a move above could see prices testing 5856.