Slobodan Drvenica
Windsor Brokers
US CRUDE OIL
Recovery from the bottom of steep three-day fall at $57.32, is running out of steam, as Tuesday's action holds in red and is capped by falling 5SMA ($59.32). Oil price bounced after last week's steep fall was contained by Fibo support at $57.32 (38.2% of $42.36/$66.58) and subsequent bounce managed to repeatedly close above the base of rising daily cloud and 100SMA, reducing immediate downside risk.
Bounce was triggered by oversold daily stochastic and profit-taking after the price fell 8.1% in just three days.
Rising cloud base and 100SMA continue to underpin, but weakening momentum and overall bearish picture, partially offset positive signals.
Conflicting signals also come from the fundamental side as US sanctions on Iran and Venezuela and OPEC+ production cut oppose fears of reduced demand on fears of trade war escalation.
Stronger bullish signals can be expected on extension above key barriers at $59.85 (Fibo 38.2% of $63.93/$57.32) and $60.16 (200SMA), while failure to break here would generate initial negative signal, which would require confirmation on fall through cloud base/100SMA.
Res: 59.85; 60.16; 60.63; 61.19
Sup: 58.59; 58.43; 58.12; 57.49
Interested in Oil technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.