Skeptical Regarding a Further Climb
U.S Crude Oil was pushed back on Tuesday. And while one day of selling does not constitute a dramatic shift in sentiment, traders may be growing skeptical about the commodity’s ability to climb further in the near term.
Crude Oil is near 63.40 U.S Dollars a barrel after yesterday’s headwinds. And there is important support around 63.00 Dollars.
Speculative Selling a Possibility
If U.S Crude Oil see speculative selling increase recent gains made the past few weeks will face important tests.
While global economic data has certainly shown significant results, supply of Crude Oil remains abundant.
Dramatic Trend Challenged
U.S Crude Oil has seen a dramatic upward trend the past several months, but if resistance around 64.50 Dollars a barrel holds the commodity may find speculative forces betting against it and profit taking grow.
Although Crude Oil may have sunnier economic prospects mid-term, the commodity could find a challenging trading environment in the days to come.
In the short term, we believe U.S Crude Oil may be negative. In the mid-term and long term we are unbiased.