US oil surged sharply in the previous on geo political tensions in the Middle East. The commodity jumped till $52.34 yesterday due to clashes in Kurdistan. Reports of clashes between Iraqi troops and Kurdish is main reas…
US oil surged sharply in the previous on geo political tensions in the Middle East. The commodity jumped till $52.34 yesterday due to clashes in Kurdistan. Reports of clashes between Iraqi troops and Kurdish is main reason for rise in crude oil price.
But upside capped due to increase in US production in Nov according to EIA report. The EIA has forecast increase of 81000 bbl per day in Nov compared to Oct.
On the higher side, near term major resistance is around $52.52 (161.8% fibo) and any break above will take the oil to next level till $52.83/$53.75 (Apr 12th 2017 high).
The near term support is around $51.40 (resistance turned into support) and any break below will drag the commodity down till $50.95 (55- 4H EMA)/ $49.87 (200- 4H MA).
It is good to sell on rallies around $51.85-$51.90 with SL around $52.40 for the TP of $50.95/$49.90.
