yesterday, crude oil rose 0.25% to close at $55.26 per barrel, extending its previous session gains.
CURRENCY TRADERS Analysis insight Brent Oi Brent crude oil is trading at $ 61.32 per barrel. Brent oil is trading below the Ichimoku Kinko Hyo Cloud, which indicates a bearish trend in Oil. The Ichimoku Kinko Hyo signal line area test is expected near the level of 62.05, from which it is expected to attempt a rebound and continue the bearish trend with a target to falling near the level of 59.35 dollars per barrel.
Earlier, a weak signal was received for the sell of Brent Oil, due to the crossing of the signal lines at the level of 63.70. The cancellation of the drop in oil quotations will be a breakdown of the upper boundary of the Ichimoku Kinko Hyo Cloud with the closing of quotes above the area of 63.50, indicating a change in the bearish trend in favor of the bullish trend. Expect to accelerate the fall in oil quotes Brent is a breakdown of the level of 61.00.
The sale and purchase of commodities is usually executed through futures contracts on exchanges that standardize the quantity and minimal satisfactory of the commodity being traded. As an example, the Chicago board of trade stipulates that one wheat agreement is for five,000 bushels and also states what grades of wheat can be used to meet the settlement.
There are sorts of traders that change commodity futures. The first is customers and producers of commodities that use commodity futures contracts for the hedging functions for which they were first meant. Theses buyers truly make or take delivery of the actual commodity while the futures agreement expires. As an example, the wheat farmer that vegetation a crop can hedge towards the hazard of dropping money if the charge of wheat falls before the crop is harvested. The farmer can promote wheat futures contracts while the crop is planted and guarantee a predetermined price for the wheat at the time it’s far harvested.
Theses traders in no way have the desire to make or take transport of the real commodity while the futures agreement expires. Among the futures markets are very liquid and have an excessive degree of each day variety and volatility, making them very tempting markets for intraday buyers. A number of the index futures are utilized by brokerages and portfolio managers to offset threat. Additionally, since commodities do now not generally exchange in tandem with equity and bond markets, some commodities can also be used correctly to diversify a funding portfolio.
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