Crude oil is continuing its rally after a massive sell off in previous week till $43.73. The rise in price in this week is mainly due to extension of production cut by OPEC and various 2nd tier Non- OPEC members. OPEC pl…
Crude oil is continuing its rally after a massive sell off in previous week till $43.73. The rise in price in this week is mainly due to extension of production cut by OPEC and various 2nd tier Non- OPEC members.
OPEC pledged to cut 1.2 million bpd of its production in the deal from Nov 30th and is expected to extend its production cut in the May 25th in Vienna. Turkmenistan, a small non-OPEC oil producer may join the Non-OPEC group as part of OPEC led production cut deal, according to industry sources.
Technically, WTI crude is facing strong resistance at $48.20 (38.2% retracement $55.21 and $43.73) and any break above will take the oil to next level till $48.50 (21 EMA)/$49.80 (55 EMA).US Oil should break above $50.20 for further jump till $55.20.
On the lower side, minor near term support is around $47.30 (10- day MA) and any break below will drag the commodity down till $46.51 (daily Tenkan-Sen)/$45.39 (61.8% retracement of $43.73 and $48.19).
It is good to buy above $48.20 with SL around $47.30 for the TP of $49.80/$50.15
