Why Follow Crude Oil Forecasts Made By Market Technicians?

It is bought for the purpose to be refined into everyday uses like diesel, gasoline, heating oil, jet fuels, cosmetics, and medicines, etc. Crude oil is one of the most frequently traded commodities in the world. It is traded by the medium of crude oil futures, standardized exchange-traded contracts in which the contract buyer agrees to take delivery from the seller for a specific quantity of crude oil (eg. 1000 barrels) at a predetermined price on a future delivery date.

Crude Oil Trading Offers Possibilities of Generating Profits

Crude oil prices can fluctuate in accordance to various unpredictable past, present, and future events like supply and demand, weather, stock levels, GDP growth, and geopolitical factors. Changes in price create trading opportunities. Because the fluctuations in the crude oil prices are reasonably large and frequent so are the possibilities to generate profit.

Technical Analysis Based Crude Oil Price Forecasts Are More Realistic

Successfully trading in the crude oil markets is not very easy. In a strongly fluctuating market, accurately predicting the long-term price for crude oil is nearly impossible. However, making predictions about the price of crude oil in the short-term, over the next few days, weeks, and in some cases, even months is possible by using quantitative factors such as technical analysis and by studying the price charts. Therefore, both corporate and retail traders of crude oil give a lot of emphasis on understanding the market strength and direction and the key support and resistance levels on the charts. Many traders keep an eye on short-and medium-term predictions for the crude oil market made by market technicians and energy commodities analysts. The technicians use spot and future price models to make a crude oil forecast. These forecasts are generally accurate and can make a great addition to any trader’s toolbox.

Technical analysts make forecasts on future direction and price targets, potential turning points, and optimal trade entry and exit points by using chart patterns, indicators, and mathematical models. Traders follow these crude oil forecasts to accurately time their trades.

Conclusion

In order to consistently have profitable trades and to mitigate losses, you should consider following technical analysis based crude oil price forecasts published by market technicians.