Commodity Trading Tips for Crudeoil by Kedia Commodity

Ajay Kumar Kedia 19 August 2013

Crude Oil Crudeoil settled up 0.84% at 6754 last week, as ongoing violence in Egypt fuelled concerns over a disruption to supplies from the Middle East. Prices rose in wake of bloody clashes between supporters of Egypt's ousted President Mohamed Morsi and Egyptian security forces, which stoked fears that tensions may spread and involve the country's oil-rich neighbors or disrupt the flow of crude through the Suez Canal. Egypt declared a month-long national state of emergency lastweek after nearly 600 people died and at least 2,000 were injured across the country as police forces cracked down on Muslim Brotherhood protesters. But gains were limited after a series of downbeat US economic data fuelled concerns over the strength of the US economy. The University of Michigan said its consumer sentiment index fell from a six-year high of 85.1 in July to 80.0 in August. Also separate reports showed that US housing starts rose less-than-expected in July and building permits also fell short of expectations last month. In the week ahead, investors will be looking ahead to Wednesday's minutes of the Fed's most recent meeting, while US data on initial jobless claims and the housing sector will also be closely watched. Oil traders have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Technically market is getting support at 6712 and below same could see a test of 6670 level, And resistance is now likely to be seen at 6786, a move above could see prices testing 6818.