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Crude Oil Forecast And Technical Analysis 03-20-2018

Crude Oil Forecast And Technical Analysis 02-20-2018

Fundamentally, tensions in the Middle East supporting the Bullish Move in Crude Oil prices.

However, looming over oil markets is surging U.S. crude output, which has reached 10.38 million bpd, up by more than 23% since mid-2016. The U.S. has already surpassed top exporter Saudi Arabia and is expected to overtake Russia as the top producer by late 2018, with the output of more than 11 million bpd.

Rising drilling activity in the U.S. also points to further increases in output. With 800 active rigs, the U.S. rig count is now much higher than a year ago when only 631 rigs were active.

The relentless climb in U.S. production is capping oil prices and undermining efforts from the Organization of the Petroleum Exporting Countries (OPEC) to prop up prices by withholding production. OPEC has been cutting output by around 1.2 million bpd since January 2017, which has inadvertently allowed the U.S. to take more market share.

Technically:

The main trend is still bullish. On the H4 chart, the price is above all major EMAs. And we see the golden cross of EMA 50,100 AND 200  which indicates a stronger bullish bias.

Key Levels.

63.30 remains as a strong resistance.

Support zone is 61.70 – 61.30

Pullbacks towards 61.70 can be used as buying opportunities.

Another buying opportunity is close above 63.30 and the target will be 65.40-65.60

Intraday Levels:

62.50 MM 8/8. Bullish intraday bias will continue as long as the price remains above 62.50.

On the downside: 62.11, 61.72 and 61.33 ( Pullback Levels to use as buying opportunities )

On the upside: 62.89 and 63.28. ( Above 63.28, the new midterm target will be 65.40)

DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.

 

 

 

CHARTREADERPRO INTRADAY SIGNALS
Crude Oil Forecast:  involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility

 

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