WTI OIL Outlook: Oil price hit three-week high on rising tensions between the US and Iran
|US CRUDE OIL
WTI oil opened with 25 pips gap higher on Monday and rallied to the highest level ($63.78) since 1 May, boosted by rising tensions in Persian Gulf and signals that OPEC+ group would probably maintain production cut.
Though rhetoric from the US following last week's attack on Saudi Arabia's oil assets and Sunday's rocket attack on Baghdad, increase fears of military conflict with Iran that would involve a number of countries in the region and could easily spread further.
Fresh strength moves again above important barrier at $63.30 (30SMA/50% retracement of $66.58/$60.03) following repeated attacks last week that failed to register close above and generate bullish signal.
Sustained break higher is needed to confirm an end of corrective phase from $66.58 high and open way for further recovery.
The action remains supported by thick rising daily cloud, with daily momentum emerging into positive territory and adding to positive stance.
On the other side, overbought stochastic warns that recovery may slow, but bullish outlook is expected to remain while the price holds above broken 20SMA ($62.82).
Res: 63.78; 64.08; 64.73; 65.03
Sup: 63.30; 62.82; 62.54; 62.02
Interested in Oil technicals? Check out the key levels
Information on these pages contains forward-looking statements that 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 assets. You should do your own thorough research before making any investment decisions. FXStreet 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.