Ryan Littlestone of ForexLive.com explains that—with factory orders being the latest data point to support this—oil still looks to be far from making a long-term bottom, though he does suggest that a test and hold of the lows may be a strong enough case for a short-term bottom.
We’ve been watching the strong jobs market for months and based on the numbers there’s nothing to fear there.
On the other side, the big US machine is still stumbling along and not nearly reaching the levels that will lift the economy further.
Factory orders is the latest industrial sector data point that shows that this part of the economy is not out of the woods yet. Oil gets a boost on a better overall economic environment, but not on data points like these.
WTI has spilt to 65.14 after the data and the bounce so far looks very weak.
WTI crude oil M15 chart 05 12 2014
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Oil still looks to be far from making a long-term bottom but a test and hold of the 64.00/63.70 lows may be a strong enough case for a seeing a short-term bottom put in place. It would need to be a fairly tight trade though.
By Ryan Littlestone of ForexLive.com
