Category Archives: Other Topics

Hydraulic fracturing accounts for about half of U.S. oil production

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Even though hydraulic fracturing has been in use for more than six decades, it has only recently been used to produce a significant portion of crude oil in the United States. This technique, often used in combination with horizontal drilling, has allowed the United States to increase its oil production faster than at any time in its history. Based on the most recent available data from states, EIA estimates that oil production from hydraulically fractured wells now makes up about half of total U.S. crude oil production.

http://www.eia.gov/todayinenergy/detail.cfm?id=25372

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“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

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World Liquid Fuels Production and Consumption Balance

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The following chart provides a graphical perspective on the liquid fuels production and consumption balance. With all the daily bantering on the networks, the chart provides a base case for a general overview of the imbalance. You can click on the link below the chart for a detailed review of the data and assumptions used in the construction of the chart. Draw your own conclusions and trade accordingly.

Global oil inventories are forecast to increase by an annual average of 1.6 million b/d in 2016 and by an additional 0.6 million b/d in 2017. These inventory builds are larger than previously expected, delaying the rebalancing of the oil market and contributing to lower forecast oil prices. Compared with last month's STEO, EIA has revised forecast supply growth higher for 2016 and revised forecast demand growth lower for both 2016 and 2017. Higher 2016 supply in this month's STEO is based on indications that production is more resilient to lower prices than previously expected. Notably, revisions to historical Russian data, which raised the baseline for Russian production, carry through much of the forecast. Additionally, lower expectations for global economic growth contributed to a reduction in the oil demand forecast.

https://www.eia.gov/forecasts/steo/report/global_oil.cfm

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2016 TradeOnline.ca

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CRB Index long-term chart showing major downtrend

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Long-term chart for the CRB Index showing the major downtrend in commodities. It is below the 2009 low. Where is the bottom?

CRB Index Chart for 2004-2016

https://en.wikipedia.org/wiki/Thomson_Reuters/Jefferies_CRB_Index

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2016 TradeOnline.ca

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West Texas Intermediate long-term chart

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It is a good idea to step back and look at a chart for West Texas Intermediate with a wide-angle lens. For 2015 and 2016, the 200-day moving averages defined the major downtrend and resistance on each of the near-term uptrends. The major trend, intermediate trend and near-term trend are all down. WTI will test major support at $35. Like I said before in a previous post, the spigots are wide open. A break below $35 will have a negative effect on world indexes. Banks have exposure to large loans given to the shale plays in the boom years.

West Texas Intermediate long-term chart showing the major downtrend.

WTI Line Chart 2004-2016

Reference the last chart analysis for WTI as crude approaches major support at $35 and the 50-day simple moving average.

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2016 TradeOnline.ca

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West Texas Intermediate will test major support at $35

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The spigots are wide open. The major trend is down, the intermediate trend is down and the near-term trend just turned down. WTI will test major support at $35. The near-term downtrend in the U.S. dollar should be a plus for WTI but right now traders are concentrating on supply news out of the Middle East.

WTI 3-Year Weekly chart

WTI 3-Year Weekly chart

Reference my post from March, 29, 2016 showing the major downtrend defined by the 200-day moving average.

Reference my post from March 15, 2016 for the support levels below 40.

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2016 TradeOnline.ca

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Gold 3-year chart showing the 1200 support zone

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Gold 3-Year Weekly Chart showing the 1200 support zone.

Gold 3-Year Weekly Chart

The 1200 zone was major resistance on February 9, 2016. You can reference the post. The reversal of roles is an important concept in technical analysis.

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2016 TradeOnline.ca

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Copper 6-month daily chart

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The break below the lateral trading band for copper indicates a major test at the (2.14 – 2.15) support zone. This is one of the many charts I have published on copper. Reference the post on March 20, 2016. The price of copper underpins the recent rally in mining stocks. Copper is also a proxy for the overall view on the the direction of the world economy: particularly the view on China. Copper has an inverse relationship with the U.S. dollar but in the end it is the perceived  supply and demand balance that determines the price for copper.

Copper 6-month daily chart showing the break below the lateral trading band.

Copper 6-Month Daily Chart

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

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West Texas Intermediate 2-year chart

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40-Week (200-Day) moving average defines the major downtrend and major resistance

West Texas Intermediate 2-Year Weekly chart

West Texas Intermediate 2-Year Weekly chart

______________________________

“Technical Analysis is about probabilities.”

Note: Click on HOME for updated postings. This technical analysis is for educational purposes so you can learn to trade online using candlestick charts and other technical indicators including volume, moving averages and oscillators. Please conduct your own chart analysis or consult your financial advisor before making investment decisions. The author of this article may hold long or short positions in the featured stock or index.

© 2016 TradeOnline.ca

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