Global macro overview for 03/11/2016:
According to the US Energy Department yesterday crude oil stockpiles advanced more than 14 million barrels last week, which is the biggest build up since the record begins in 1982. The market participants have expected only a slight increase of 1.014 million barrels after last week shortage of 0.553 million barrels. All the crude oil gains made after the Colonial Pipeline had to shut down its main pipeline for a second time in as many months following an explosion were reversed and both crude oil and brent oil felt down significantly. In conclusion, the current oil production is at all-time highs and the recent failure in an agreement between the OPEC and non-OPEC members will possibly make another sell-off in oil prices.
Let's now take a look at the Crude Oil technical picture at the 4H time frame. The price is trading just above the important technical support at the level of 44.45 and it is below all of the moving averages. Moreover, the gray rectangle area is the most important demand zone, so any break out below this zone will result in another sell-off. Please notice that the growing bullish divergence between the price and the momentum oscillator indicates a corrective upside price movement soon.
From www.instaforex.com http://ift.tt/2fHw6AM
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