CFD News; Oil sees demand after testing key support.

Welcome to Wednesday’s update, traders. Today our focus is on oil as price has started to move higher after testing and holding for now at key support.

Price continues to trade in a short to medium-term downtrend after sellers turned momentum back in June. Since that point, it’s been a series of LHs and LLs. Today’s price has shown defensive action from buyers after this morning’s lower gap failed to beat 94.90 area support and demand.

Could yesterday’s bar be seen as exhaustion? If buyers can hold this level of support, we will be looking for price to continue to push higher. Obviously, if we see a break, then it’s back to looking for new LLs maintaining the downtrend.

The MAs remain bearish, but the OBV has stopped putting in clear LLs despite yesterday’s strong move lower. Could support be hiding plenty of fresh demand from oil buyers? We will have to wait and see if buyers can hold the level again today.

Data to keep an eye out for today. 10:30 pm US CPI and core CPI. 12:30 am US crude oil inventory numbers.

Oil D1 Chart

The post CFD News; Oil sees demand after testing key support. appeared first on Eightcap.

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Joseph Jeffriess, Market Analyst in Eightcap
Eightcap is one of the leading CFD brokers in the market, providing online trading services to a wide range of clients from around the world. They offer 1,000+ CFDs based on Forex, commodities, indices, shares, and cryptocurrencies. The well-established trading company was founded in Melbourne, Australia, in 2009, and is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).