FxWirePro: US Oil upside capped by daily Tenkan-Sen, good to sell on rallies
WTI crude oil has shown a huge jump yesterday after hitting a low of $49.75 as Saudi Arabia and Russia would limit production in next year. But declined sharply from the high of $51.20 level till $50.05. The upside in US…
WTI crude oil has shown a huge jump yesterday after hitting a low of $49.75 as Saudi Arabia and Russia would limit production in next year. But declined sharply from the high of $51.20 level till $50.05.
The upside in US crude has capped mainly due to increasing US crude exports and resumption of production at Libya’s largest field Sahara.
US Oil has formed a temporary top around $52.83 and started to decline from that level. The commodity has jumped till 61.8% fibo and started to decline. But minor bullishness can be seen only above $51.29 (61.8% retracement of $52.83 and $49.75).
On the higher side, near term resistance is around $50.51 (2.6% fibo) and any break above will take the commodity to next level till $51.29 (daily Tenkan-Sen)/$51.97. Short term bullish continuation only above $52.83.
It is good to buy on dips around $50.65-70 with SL around $51.29 for the SL around $49.75/$49
