Watching Oil? Learn to trade!

It was only the end of the summer when WTI Crude was trading over $100 per barrel.  Since then we have seen a substantial fall in the price – currently trading below $70 per barrel.  What does all of this mean?

The Academy of Financial Trading knows exactly what this means and, more importantly, we specialise in teaching the retail trading community how to take advantage of these trending moves.  A $30 drop in oil is a 3,000 tick / pip movement.  Even with a minimal trade size, if represents one of the few trades which can make the difference between a good year and a great year for a trader.

For those who are interested in learning how to trade correctly, it should be a priority to attend our Foundation Trading Programme.  This is a soft introduction to online trading, and it explains the common headwinds which all retail traders encounter. 

By focussing on the strength of a trending move, and by following the successful path worn by institutional traders, the Academy of Financial Trading is in prime position to assist those who are hoping to become successful in this industry. 

As for oil – we look at the technical picture.  There is a saying that the best cure for a low oil price, is a low oil price.  This means that the lower the price goes, the more oil wells or fields will close just because of an inability to earn any revenue at the lower price per barrel level.  With less oil being produced, the price of oil will then rise, thereby giving the closed wells a reason to re-open and start producing again. 

However, technically there is a lot of historical support between $59 and $69 per barrel.  A breach of that level, and $30 to $40 will be calling.  Is it time to trade in the electric car?   

Will the Swiss go for Gold?

Switzerland goes to the polls this weekend to decide whether or not the Swiss National Bank (SNB) should be prohibited from further gold sales, to ensure that all Swiss-owned gold is repatriated to Switzerland, and to mandate that gold makes up at least 20 percent of the SNB’s assets.

This is a time of huge interest to traders… and the mainstream media discussion has proven to pique the interest of even the novice market watcher to analyse what will happen to the price of gold as the result is announced.

The Academy of Financial Trading has noticed a huge increase in the interest being exhibited to the gold market as a result of this pending vote.  As an online trading academy, the company has a wide and diverse student base – but the interest in trading transcends all demographics. 

It is fair to say that this decision will impact the market from a fundamental perspective. Co-incidentally however, it is also a time where technical price action must be appreciated.  As an educational entity who specialises in short term trading techniques, we believe that the technical side will win out.

The gold market appears to be building a base around the supportive area of $1,140 - $1,180.  If this supportive zone proves to be impenetrable, then the market should rally from here in the relative short term.  A break below this level might however see quite a rapid fall towards $1,100 at least. 

It goes without saying that a “Yes” vote would be incredibly supportive for gold.  It would force the SNB to purchase 70% of total global production over the next 3 years to fulfil the wishes of the electorate.  Fundamentally positive for the price of gold?  Yes!