Crude Oil Rebounds after US Oil-Rig Count News

FXOpen

Crude oil inched higher on Monday during the Asian session, increasing the price to more than 48.50 amid some key economic news. The technical bias remains bullish because of a Higher High in the recent upside rally.

Technical Analysis

As of this writing, the West Intermediate Texas (WTI) is being traded near 48.85. A support may be noted around 48.20, a key horizontal support area ahead of 46.38, the swing low of the last major downside move as demonstrated in the following daily chart.

Crude Oil Rebounds after US Oil-Rig Count News

On the upside, the black gold is expected to face a hurdle near 50.00, the confluence of a psychological number as well as the horizontal resistance ahead of 52.09, the swing high of the last major upside rally. The technical bias will remain bullish as long as the 46.38 support area is intact.

US Oil-Rig Count

The number of rigs drilling for oil in the U.S. rose by nine over the past week to 337, marking the third straight week of gains, according to the oil-field services company Baker Hughes Inc. The U.S. oil-rig count, viewed as a proxy for activity in the sector, has fallen sharply since the oil prices began to drop in 2014. The number of the U.S. oil rigs peaked at 1,609  in October 2014. The nation’s gas-rig count rose by one in the past week to 86. The U.S. offshore-rig count was 21, unchanged from last week but down by six from a year ago.

Trade Idea

Considering the overall technical and fundamental outlook, buying crude oil on dips appears to be a good strategy in short to medium term.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: Dollar Falls from 10-month High Market Analysis: US Currency Continues to Grow Ahead of GDP Data Release Market Analysis: Gold and Commodity Currencies Resume Their Decline Market Analysis: EUR/USD Takes Hit While USD/CHF Surges Market Analysis: The Yen and European Currencies Headed to New Lows

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: Inflation, EUR/USD, S&P 500, OIL

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Inflation Still Dogs the

Forex Analysis

Market Analysis: Dollar Falls from 10-month High

EUR/USDThe euro rose on Thursday as the dollar retreated since investors remained cautious ahead of key inflation figures due on Friday. Data on Thursday showed the US economy maintained fairly strong growth in Q2, with an unrevised annual rate

Indices

US 30 Analysis: Dow Jones Finds Support

September is likely to be the second month in a row that the Dow Jones (US 30) stock market index declined. The last time this happened was... also in September, a year ago. Important economic data was published yesterday: → According

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.