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FxWirePro: Crude Oil recovers after OPEC meeting, good to buy on dips

  • US oil declined sharply yesterday till $56.74 and shown a minor increase from that level after OPEC meeting. OPEC agrees to extend its production cut to end of 2018.. The commodity recovered from intraday low of $57.25.
     
  • The oil prices jumped almost 40% after OPEC and Russia planned to cut production by 1.8 million barrels per day.
     
  • The commodity has taken support near 20 –day MA ($56.79) and trend line ($56.71) at $56.74 and shown a minor jump from that level. Minor resistance is at $58.20 (61.8% fibo) and any break above will take the oil to next level till $59.05. Overall bullish continuation only above $59.05.
     
  • On the lower side, any break below $57.40 (10- day MA) will drag the commodity down till $56.70-75 (20- day MA and trend line support)/$56/$54.89 (Nov 14th 2017 low).

It is good to buy on dips around $57.40-45 with SL around $56.70 for the TP of $59.05/$60.

 

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