At the end of the past trading week and the beginning of the current one, the significant price growth due to the decrease in supply was replaced by a correctional fall by more than $7 per barrel.
The OPEC+ oil production limitation Agreement is still relevant, but due to serious price growth and demand increase, a gradual restoration of production volumes is possible, which can have become the cause of the price’s rapid fall. Additional catalysts were the sales of the instrument at local highs. Today the price tested the level of 65.75, which is the local minimum of mid-April. In addition, the strengthening USD affects the instrument negatively.
At the beginning of the current trading week, low volatility is expected due to the lack of strong macroeconomic catalysts.
Support and resistance
In the medium term, the movement is expected to reverse from the downward trend to a sideways one. A wide consolidation is due to the stabilization of the oil market, but demand will be lower than in February, March, and April. The price rebounded from the lower border of the upwards channel.
In the medium term, a restoration to 69.75, 70.70 and formation of a new downward wave are expected. Technical indicators confirm the forecast of the sideways turn, MACD long positions volumes decrease, Bollinger bands rearranged horizontally.
Resistance levels: 68.00, 68.75, 69.75, 70.70, 71.50, 72.65, 74.00.
Support levels: 66.55, 65.75, 64.10, 63.70, 60.75.
It is relevant to increase the volumes of long positions from the current level with the target at 70.70 and stop loss around 65.30.
WTI Crude Oil
|Support levels||60.75, 63.70, 64.10, 65.75, 66.55, 68.00, 68.75, 69.75, 70.70, 71.50, 72.65, 74.00|
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