Crude Oil Hammered By Chinese Announcement

Hello traders everywhere. The Chinese government announced on Wednesday that they would slap a 25% tariff on $16 billion of U.S. goods to include diesel, fuel oils, and other petroleum products. China has already taxed U.S. crude imports and has also announced plans to place tariffs on U.S. liquefied natural gas.

This announcement has sent U.S. West Texas Intermediate (WTI) crude futures to a new three-week low and getting close to its seven-week low. Oil is down -3.8% on the day hitting a session low of $66.32 and looking to test the seven-week low sitting at $66.29 and if it closes below that level look for it to test the 200-day moving average sitting at $64.33.

Crude Oil Hammered

Bitcoin continues to head lower under intense selling pressure triggering a new red weekly Trade Triangle at $6,331.69 and breaking through the 50-day moving average. The recent sell-off is in large part due to the decision by the Securities and Exchange Commission (SEC) to delay a ruling on a long-awaited bitcoin ETF to September.

The 7.9% sell-off in the last 24 hours reinforces the idea that the reason for the recent the rally in July was likely fueled by speculation that the SEC would approve a Bitcoin ETF within weeks. Look for Bitcoin to test the four-week low sitting at $6,075.95 with a possible consolidation at that level, but if it the move lower pushes through that level we could see it take out the yearly low of $5,823.19.

Key Levels To Watch This Week:

S&P 500 (CME:SP500): 2,789.24
Dow (INDEX:DJI): 24,979.64
NASDAQ (NASDAQ:COMP): 7,933.31
Gold (NYMEX:GC.Z18.E): 1,226.00
Crude Oil (NYMEX:CL.UN18.E): 69.92
U.S. Dollar (NYBOT:DX.M18.E): 93.87
Bitcoin (CME:BRTI): 8,476.34

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

3 thoughts on “Crude Oil Hammered By Chinese Announcement

  1. For Bitcoin, in my post of July 17th, I had predicted bearish mid and long term view. Also I stick to my earlier view to get, up to or even sub $ 4000 lower mark as a strong Probability if break below $ 6600 and $ 5800.

    Also I would like to warn, and it must be point-out that after forming it’s All Time High, Bitcoin entered in "Extremely High Volatility Zone" sharp and sudden either side moves can’t be ruled-out, so Strong Stops are advised.

  2. In my Posts of May-30th and July 1st, for WTI, I have provided maximum possible upper limits of $ 74 to $ 76 and only above these levels, any further bull possibilities were there.

    Still, no bull run probability found in chart, even with strong crash probabilities. From present level of $67, WTI may find some bounce back up to $ 68 to $70, however, this gain may prove as falls move, and market may turn bearish again. Bellow $ 66, next support will be at $ 62.50, but i think both these supports may found broken.

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