Crude oil continuing its winning streak for eight days after hitting low of $42.03 on Jun 21st 2017. The rise in oil prices was mainly due to short covering and slight decline in U.S output. Oilfield services firm Barker…
Crude oil continuing its winning streak for eight days after hitting low of $42.03 on Jun 21st 2017. The rise in oil prices was mainly due to short covering and slight decline in U.S output.
Oilfield services firm Barker Hughes reported its weekly U.S rig count to fell by 2 to a total of 756 and rig count is important barometer for oil drilling industry. But oil prices upside is limited as OPEC and its allies are struggling to control the oversupply.
Technically, commodity has formed bullish crossover (10- MA and 14-MA) and confirm minor bullishness , jump till $50 likely. The near term resistance is around $48 (89- EMA) and any break above will take the crude oil till $50.22 (61.8% retracement of $55 and $42.03) and $51.97.
On the lower side, major near term support is around $45.30 (21- EMA) and any brealk below wll drag the commodity down till $44.50 ( 10- MA)/$43.
It is good to buy on dips around $46 with SL around $45.30 for the TP of $48/$50.
