Oil prices returned to decline on Monday, retreating from local highs after a moderate upward rally last week. Investors are optimistic about progress in US-Chinese trade negotiations, but negative macroeconomic statistics and disappointing forecasts of energy demand have a restraining effect. Some support for oil quotes is provided by OPEC+ actions. The organization intends to expand the current agreement on limiting oil production, but the next meeting of the cartel is planned only for December. Today, investors are focused on the American Petroleum Institute Weekly Crude Oil Stock report as of October 25.
Support and resistance
Bollinger Bands in D1 chart show stable growth. The price range is expanding from above, but it could not catch the development of “bullish” trend until current moment. MACD is about to reverse downwards keeping a buy signal (located above the signal line). Stochastic is showing similar dynamics, preparing to retreat from its highs, indicating the overbought instrument in the ultra-short term.
The development of a full-fledged downtrend is possible in the short and/or ultra-short term.
Resistance levels: 62.00, 62.67, 64.00.
Support levels: 61.16, 60.00, 59.00, 58.28.
To open long positions, one can rely on the breakout of 62.00. Take profit — 64.00. Stop loss — 61.00.
The development of correctional trend with the breakdown of 61.16 or 61.00 may become a signal for new sales with target at 59.00. Stop loss — 62.00.
Implementation time: 2-3 days.
W&T Offshore, Inc., an independent oil and natural gas producer, engages in the acquisition, exploration, and development of oil and natural gas properties in the Gulf of Mexico. The company sells crude oil, natural gas liquids, and natural gas. It holds working interests in approximately 48 offshore fields in federal and state waters. The company also owns interests in approximately 123 offshore structures. It has interests in offshore leases covering approximately 390,000 net acres spanning across the Outer Continental Shelf off the coasts of Louisiana, Texas, Mississippi, and Alabama. As of December 31, 2018, its total proved reserves were 84.0 million barrels of oil equivalent. The company was founded in 1983 and is headquartered in Houston, Texas.
Mar-08-19 Initiated Stifel Buy $10
May-23-18 Initiated ROTH Capital Neutral $8.75
May-16-18 Downgrade CapitalOne Equal Weight → Underweight
May-15-18 Downgrade KLR Group Hold → Sell
Mar-12-18 Upgrade CapitalOne Underweight → Equal Weight
Jan-10-18 Downgrade CapitalOne Equal Weight → Underweight
Oct-17-16 Downgrade Barclays Equal Weight → Underweight $2 → $1
Mar-10-16 Downgrade KLR Group Buy → Hold
Jan-19-16 Downgrade CapitalOne Equal Weight → Underweight
Aug-17-15 Downgrade Iberia Outperform → Sector Perform
Feb-02-15 Reiterated Scotia Howard Weil Sector Perform $9 → $6
Dec-02-14 Downgrade Global Hunter Securities Buy → Neutral
Feb-03-14 Reiterated Barclays Equal Weight $20 → $16
Oct-21-13 Reiterated Barclays Equal Weight $17 → $20
Apr-22-13 Reiterated Barclays Equal Weight $17 → $16
Mar-09-12 Upgrade Global Hunter Securities Accumulate → Buy $25 → $30
Nov-14-11 Reiterated Barclays Capital Equal Weight $17 → $22
Oct-12-11 Upgrade Global Hunter Securities Accumulate → Buy
Apr-27-11 Reiterated RBC Capital Mkts Sector Perform $21 → $23
Apr-27-11 Reiterated Howard Weil Market Perform $18 → $23