FxWirePro: US Oil declines on oversupply concerns, good to sell on rallies
Pattern Formed – Shooting Star Major resistance- $49.35 (161.8% retracement of $46.79 and $42.90) US oil has declined after making a high of $49.27 on account of strong USD and firm global supply will continue to outpace…
Major resistance- $49.35 (161.8% retracement of $46.79 and $42.90)
US oil has declined after making a high of $49.27 on account of strong USD and firm global supply will continue to outpace demand.
Supply disruption in North America and Africa have been largely responsible for recent spike in oil price.
But number of rigs operated by U.S drillers was steady last week for the first time this year indicates abundant supply .
Technically the commodity has facing strong resistance at $49.35 (161.8% retracement of $46.79 and $42.90) and any further bullishness only above that level.
US oil has declined till $47.66 at the time of writing. It is currently trading around $47.83.
On the higher side minor resistance is around $48 and break above targets $48.60/$49/$49.35.
The major support is around $47 (10 day MA) and break below $46/$45.
It is good to sell on rallies around $48-$48.10 with SL around $49.35 for the TP of 46.70/$45
