CRUDE OIL Forecast and Technical Analysis 02-07-2018
At the end of the week, US President Trump announced that they agreed to make 2 million barrels/day additional production with Saudi Arabia, followed by a denial by the White House / Saudi Arabian authorities Crude Oil prices pulled back to 72.60. However, we saw the demand at 72.60 and price went up. It is trading at 73.50 as of writing.
The United States’ attempts to cover the shortage of supply that may arise from the limitation of petroleum imports from Iran (excluding China and Turkey 1:58 million barrels/day) would have a limited impact to the medium-term pricing. At this point, Russia and Saudi Arabia will play an important role.
In addition to Iran, the interruptions in Libya and Venezuela and the existing limited/inadequate pipeline capacity of the US rock oil market give the sign of the continuation of the Bullish Move.
Our midterm prediction is 76.53- 78.20 region.
The key levels for day traders are as follows:
On the downside: If Crude Oil makes an H1 closing below 73.40, we might see the price testing the MM 5/8 72.66 and 72.40 SMA support of the Daily Chart. Below this level, 71.87 is the possible pullback level which can be used as buying opportunity.
On the upside: A few H1 closings above 73.40, will carry the price 74.21, 74.97 and 75.74.
We plan to use pullback as buying opportunity.
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DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money
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