Oil was there being traded in the market, was also giving profits to the investors but all this happened well below the expected price level. After the big fall crude had during April 2012, it had not revived back well going against the expectation of so many investors. The magnitude and dimension of the fall was greater compared to the rise in the prices since then. But, within the first half of October, it is already starting to show some good bullish signs.

For the first time since February 2008, the unemployment claims fell to 339,000 last week, the lowest level in four years. The concerns in the Middle East also have made people speculate that the crude supplies may get shortened and the prices may ultimately hike. Experts claim that the expected blow up in the Middle East region will definitely boom up the prices due to obvious reasons of deficit supply.

The data compiled by the Bloomberg shows that the MACD indicator has gone above the signal line and therefore it is expected that the bullish trend for the crude oil will be seen. Bloomberg also says that there is a bullish MACD crossover seen which will definitely attract the investors to go long on crude. On October 10, 2012 Syrian plane carrying munitions were forced to land which has hiked the tension in the region and Russia seems to get involved with it as the weapons were of the latter.

Iran’s nuclear program has been driving the news channel since long and therefore Europe has finally thought of tightening its policy against Iran by announcing a ban on purchase, transport, etc. and such measures will also affect the demand-supply equilibrium of the crude oil and thus the crude prices seem to go up.

OPEC (Organization of Petroleum Exporting Countries) also seems to reduce its shipments looking at the current oil movements and the signs are seen as the supplies were lowered down.

Though the technical analysis all seem to project the price hike, sudden fundamental news may affect the projection, therefore looking into both the analysis before the investment would be more safe and beneficial.

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.