Crude Oil jumps 4% on OPEC output cut agreement

Slobodan Drvenica Windsor Brokers

WTI oil bounced above $54 per barrels in early US trading on news that OPEC reached a deal to cut production.

Cartel members and oil producers outside the group, led by Russia, agreed to reduce production by 1.2 million barrels per day, just under widely expected 1.3 million bpd.

Improved sentiment pushed the price nearly 4% for the day and signals further advance.

Fresh rally returned above broken 200WMA ($52.31), cracked falling 20SMA ($53.67) and pressures recovery highs at $54.54, posted earlier this week, with sustained break higher to open way towards falling 30SMA ($56.80) and signal base at $50 zone.

North-heading daily indicators support the scenario, along with Morning Doji Star reversal pattern that is forming on weekly chart.

Res: 54.54; 55.89; 56.80; 58.14
Sup: 52.31; 51.99; 50.59; 50.00

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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