Major resistance - $55.15 (161.8% retracement of $52.83 and $49.13). Bearish Divergence – StochosticRsi and CCI (50) Crude oil prices hits 6- month high yesterday due to comments made by Saudi Crown Prince on extension o…
Major resistance - $55.15 (161.8% retracement of $52.83 and $49.13).
Bearish Divergence – StochosticRsi and CCI (50)
Crude oil prices hits 6- month high yesterday due to comments made by Saudi Crown Prince on extension of output cut. Oil has broken major resistance at $53.74 high made on Apr 12th 2017. It is currently trading around $54.03.
The OPEC and IEA is forecasting better than expected demand in the coming years and OPEC is expected to extend its production cut by another 9 months. But upside is slightly capped by increase in US crude oil production.
WTI Crude ‘s major resistance is around $55.15 (161.8% retracement of $52.83 and $49.13) and any break above will take the oil price higher till $58/$60.
On the lower side, major support lies in $52.80 (resistance turned into support) and any break below will drag the commodity down till $52.40/$52.28 (10- day MA)/$51.64 (daily Kijun-Sen). Minor weakness can be seen only below $ 50.95.
It is good to sell on rallies around $54.35-40 with SL around $55.10 for the TP of $52.85/$52.40
