Oil is down another 4% today and is trading at $50.93 a barrel. Today’s $2+ dip is pushing prices to the bottom of a $50-$55 ongoing trading range. This shouldn’t come as that big of a surprise as U.S. crude-oil inventories hit a record last week. The rise in imports and lowered refinery activity were clues prices could fall along with domestic production hitting its highest level in more than a year.
Total crude production rose 56,000 barrels last week to over 9 million barrels and represent the largest amount of inventory in more than a year. Holding the $50 level will be an important task for the bulls but a level I expect the bears to crack in the coming weeks. I’m have been adding possible trades to my Watch List so stay ready.
Elsewhere, Gold continues to tumble after failing its 200-day moving average earlier this month. The yellow metal is on a six session slid and is currently at $1,216 an ounce, down $9 today. There is support at the 100-day moving average along with the $1,200 level and the 50-day moving average.
As far as the indexes, trading as remained much of the same with choppy action heading into the final hours of trading. The Dow is down 8 points to 20,916 while the S&P 500 is gaining 2 points to 2,371. The Nasdaq is jumping 23 points to 5,857 and the Russell 2000 is climbing 2 points to 1,376.
I have updated our current trades so let’s go check the tape.