Hello traders everywhere! Adam Hewison here, President of INO.com and co-creator of MarketClub, with your video update for Monday, the 28th of April.
The current equity markets are proving to be frustrating for many traders as there has been no clear-cut direction for some time. Many of the indices are still in a trading range and could be making major tops. Don't forget, this bull market is now in its fifth year and is getting long in the tooth.
Like many investors, I am still very much concerned about events in Europe and the Ukraine. I think this is contributing to a large part of the indecision in the markets, causing them to move up one day and down next day.
Certainly there has been positive news for stocks, with earnings for many companies looking very good. There is also some disturbing news of a potential slowdown in Europe, along with some not-so-rosy guidance by several companies.
Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.
As the week starts, our attention turns to the June Crude Oil futures (NYMEX:CL.M14.E). After gaining nearly $7/barrel in less than a month, the market has recently consolidated around $103.50/barrel as it begins to decide which direction it will take. It appears that some of the recent slowing of the market is due to profit-taking, as the recent sharp up-trend may have gained too much too soon. There are a number of fundamental factors at play in the market, many of which seem to work in contrast with each other: support from Russia-Ukraine uncertainty, resistance from ample supply concerns, and improved demand prospects following solid US Economic data last week. With a number of different fundamental factors in play – and uncertainty over which fundamental factor the market will focus on moving forward – I will focus on the technical aspects of the market for a potential trading opportunity.