A death cross is forming in U.S. oil, underlining the unraveling of crude prices

Oil is already in a bear market, but now a fresh, negative pattern is crystallizing in the commodity that has absolutely bludgeoned bulls over the past two months. January West Texas Intermediate crude CLF9, -7.76% early Friday settled 7.7% lower at $50.42 a barrel on the New York Mercantile Exchange and that downtrend has propelled the U.S. benchmark to the brink of forming a death cross — a chart formation in an asset that many market technicians believe marks the point that a short-term decline morphs into a longer-term downtrend. Read More @  https://www.marketwatch.com/story/a-death-cross-is-forming-in-us-oil-underlining-the-unraveling-of-crude-prices-2018-11-20?siteid=rss&rss=1

Oil tumbles on oversupply concerns, sinking world stocks

Both Brent and U.S. crude fell to their lowest levels since October 2017 and were on course for their biggest one-month decline since late 2014. Although the Organization of the Petroleum Exporting Countries is expected to curb output, rising U.S. oil supply has fueled persistent concerns about a global surplus. Tumbling oil prices pushed U.S. energy shares down more than 3 percent. As a result, the benchmark S&P 500 stock index ended lower to confirm correction territory, having dropped more than 10 percent from its record closing high in late September. Trading volume was light in a shortened session after the Thanksgiving holiday. Read More @ https://www.reuters.com/article/us-global-markets/oil-tumbles-on-oversupply-concerns-sinking-world-stocks-idUSKCN1NS01Q?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29

Pound’s Fate Could Worsen as Investors See Multitude of Risks

Pound traders are faced with several scenarios as political turmoil surrounds U.K. Prime Minister Theresa May, and few look positive. With this week’s events suggesting May’s Brexit plan doesn’t have strong support, investors now wonder what the premier’s next move will be if her deal is rejected in Parliament. May’s options include negotiating another deal with the European Union, holding a second Brexit referendum or even a general election, all as she faces the possibility of a no-confidence vote in her leadership. Read more @ https://www.bloomberg.com//news/articles/2018-11-17/pound-s-fate-could-worsen-as-investors-see-multitude-of-risks?srnd=markets-vp

WHAT ARE THE TECHNICAL CHARTS SAYING?

USD, CHF & JPY all three instruments could be a safe haven this week; all currencies will continue their swings and remain downward pressure. Be cautious and don’t over-expose your position as the FED moves to rate hikes in December.

BITCOIN

Genesis Trading CEO Michael Moro has predicted that bitcoin will bottom out at about $3,000 after a week that has seen the leading cryptocurrency fall as low as $4,035. Speaking to CNBC, Moro stated that he does not expect the $4,000 support level to hold out much longer as selling pressure from pre-2017 bitcoin investors liquidating their holdings will continue to drive the price downward.

GOLD

Gold Prices See Little Reaction To Modest Drop In U.S. Flash PMI Data –  The gold market remains in negative territory and is seeing little reaction to weaker preliminary sentiment data in both the manufacturing and service sector data. The flash U.S. manufacturing Purchasing Managers Index for November fell to a reading of 55.4, down from October’s reading of 55.7, research firm IHS Markit said in its latest report. Economists were expecting a modest decline to 55.8. At the same time, the firm’s service-sector PMI fell to 54.4, compared to October’s reading of 54.8. Economists were expecting the index to rise to 55.0. Monthly reading above 50 points to an expanding sector, while anything below that shows a contraction in activity. Activity in the gold market has been fairly quiet because of Thursday’s Thanksgiving holiday. The market is seeing little reaction to the latest U.S. economic data. December gold future while off their lowest remain in negative territory, last trading at 1$,225 an ounce, down 0.24% on the day. Read More @ https://www.kitco.com/news/2018-11-23/Gold-Prices-See-Little-Reaction-To-Modest-Drop-In-U-S-Flash-PMI-Data.html

OIL

7% Drop In Oil Makes Difficult But Not Impossible Environment For Gold – Analysts – Once again, lower oil prices are dominating commodity markets, casting a dark shadow even over safe-haven assets like gold. Analysts note that because oil is a significant component in many indexes, it will be difficult for gold prices to fight the weakening trend. Gold prices are ending the week eking out small gains as the price was unable to break above initial resistance at $1,230 an ounce. December gold futures last traded at $1,223.50 an ounce, nearly unchanged on the week. Keeping a lid on gold prices is a massive nearly 7% drop in oil prices Friday to a new one-year low. January West Texas Intermediate (WTI) crude oil prices last traded at $50.74. Read More @ https://www.kitco.com/news/2018-11-23/7-Drop-In-Oil-Makes-Difficult-But-Not-Impossible-Environment-For-Gold-Analysts.html

Therefore, trading this week will be a tough one as the market consolidates for the FED to make its move in December for a rate hike.

Be cautious and always bear in mind good money management at all times.

High Risk Investment Warning:

Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.

 

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