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US TSY OPTIONS

Overnight Trade Recap

US TSYS

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  • WTI crude futures ticked lower on the release of the weekly DoE crude oil inventories data (one day delayed due to the Columbus Day holidays) with markets focusing on the considerably larger-than-expected build in headline crude stockpiles (+6.1mln bbls vs. Exp. +521k). This pressured front-month WTI futures to lows of $80.38, although losses were limited by the countering draw in gasoline inventories, at -2mln bbls vs. Exp. build of +947k.
  • Despite the pullback in prices, the outlook remains bullish and the contract is holding onto recent gains. Monday's fresh high confirmed an extension of the current bullish price sequence of higher highs and higher lows, reinforcing the uptrend. Note that the $80.00 psychological hurdle has also been cleared. The focus is on $82.89, a Fibonacci projection.
  • Gold held the bulk of the Wednesday rally, and has breached the 50-day EMA and resistance at $1787.4, the Sep 22 high. The resumption of strength reinforces short-term bullish conditions and the bullish engulfing candle pattern that signalled a potential reversal on Sep 3. The focus is on $1808.7 next, Sep 14 high. Initial firm support is at $1746.0, Oct 6 low. A break is required to undermine a bullish tone.