BRENT crude oil insight for November 20 — 24, 2017
- BRENT crude oil close the trading week near the area of $ 61.84 per barrel.
- continuing the fall in the support area at $ 57
- signal in favor of falling oil quotes is the formation of the reversa
cancellation of the variant of falling quotes and prices for Brent oil in the current trading week will be the breakdown of area 65
CURRENCY TRADERS BRENT crude oil insight Quotes from Brent crude oil closed the trading week near the area of $ 61.84 per barrel. It is worth waiting for the test of 62.50 and continuing the fall in the support area at $ 57 per barrel. An additional signal in favor of falling oil quotes is the formation of the reversal model «Failure Swing» on the indicator of relative strength index (RSI).
BRENT crude oil insight
The cancellation of the variant of falling quotes and prices for Brent oil in the current trading week will be the breakdown of area 65, which will indicate the continued growth of oil with a test of $ 70 per barrel. Expect to accelerate the fall is the breakdown of the lower boundary of the channel and closing below the level of 59.50.
assumes a test of the level of 62.50, from where it is expected to continue the fall of oil, an additional signal in favor of the oil price decline is the formation of the model «Failure Swing» on the indicator of relative strength index (RSI).
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Commodities Buyers and Producers
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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