FxWirePro: US oil struggles to close above 200-W EMA, dip till $55 likely
Major resistance - $58.95 (200-W EMA)
US oil was trading extremely bullish in the previous week and surged more than 7% till $59.81. The increase came after OPEC and allies have agreed to cut production by extra 500,000 barrels per day to take their target to 1.7 million B/D. But China's crude exports have fallen in Nov 1.1% y/y vs forecast of a 1% jump, which slightly dragged the price of crude. It is currently trading around $58.49.
Technically, the commodity is struggling to close over $58.95 (200-W EMA). This confirms minor weakness, a dip till $57.40/$56.45/$55 possible.
On the higher side, near-term major resistance is around $60-$60.50 and any convincing break beyond targets $63.33/$65.
It is good to sell on rallies around $58.85-90 with SL around $59.95 for the TP of $56.40/$55.
