Oil continues to respond to stabilisation efforts
Further to our previous article, UKOil, FXCM’s proxy for Brent, has crossed above its black 20-day SMA. Moreover the RSI has also crossed to the bullish side of 50 (blue rectangle). As an added filter we are now looking for the SMA to turn up to confirm the underlining bullish momentum. Crude is benefiting from the potential meeting of OPEC+. It was initially scheduled for today but has been pushed back until Thursday for “technical reasons.”. Tensions remain high between the Russians and Saudis but Reuters reports that Moscow is ready to coordinate with other exporters to stabilise energy markets. If a deal is struck we do expect price to appreciate and the SMA to respond bullishly.
Past performance is not an indicator of future results
CHART SOURCE: FXCM MARKETSCOPE 2.0
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