Slobodan Drvenica
Windsor Brokers
WTI Oil
WTI oil price is consolidating on Tuesday, following Monday’s strong rally of nearly 5% and keeping traction for possible further advance.
Crude prices received strong support from supply disruption in Iraqi Kurdistan, as Iraq was forced to stop exports of about 450.000 barrels per day, easing worries about crisis in banking sector, which sparked cautious optimism and revived demand for riskier assets and signs of recovering demand from China.
All these factors contributed to improving sentiment, which strongly lifted the price on Monday, registering the biggest daily gains since Nov 4, 2022.
On the other hand, technical picture on daily chart has improved, but 14-d momentum indicator is still in the negative territory and stochastic is overbought, sending an early warning that bulls need more evidence for confirmation.
Near-term action is on track for the second consecutive daily close above 50% retracement of $80.99/$64.34 ($72.66) and also cracked falling 20DMA ($73.18, which would add to positive signals and open way for test of next pivotal barriers at $74.30 (30DMA) and $74.63 (Fibo 61.8%).
Caution on return below $72.66, which would generate initial negative signal of possible recovery stall, but near-term bias will remain bullishly aligned while dips hold above $70.70 (broken Fibo 38.2% of $80.99/$69.34).
Loss of psychological $70 support would signal that bears regained control and risk continuation of larger downtrend.
Res: 73.77; 74.30; 74.63; 76.33
Sup: 72.66; 71.64; 70.70; 70.00
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 regains 1.0700 as US Dollar stays on the back foot
EUR/USD is trading above 1.0700, as bulls keep the reins for the second consecutive day early Thursday. The major currency pair fails to justify looming economic fears and upbeat US Treasury bond yields amid a broadly weaker US Dollar. Final Eurozone Q1 GDP eyed.
GBP/USD bulls ignore mixed BoE clues to prod 1.2450 as June Fed rate hike appears elusive
GBP/USD buyers occupy driver’s seat around 1.2450, despite marking a slow run towards the north heading into Thursday’s London open. The Cable pair buyers cheer the receding odds of a Fed rate hike in June while early signals for the Bank of England’s (BoE) interest rate guide appear mixed.
Gold to maintain $1,930 support on mixed growth, Fed concerns
Gold seesaws around intraday high as it prints mild gains after falling the most in a week the previous day. Even so, the XAU/USD remains indecisive on a weekly basis as the markets struggle for clear directions amid the pre-Fed blackout and mixed feelings about global growth concerns.
Dogecoin price could rally 30% if DOGE history over the last six months is enough to go by
Dogecoin price has been trading within a fixed range over the last six months, taking seasonal leaps as volatility increased. With this accumulation pattern, the king of meme coins could be en route to complete the next bounce cycle.
Plenty of hawkishness to go around
/stock-market-graph-gm529236845-54345172_XtraSmall.jpg)
We haven’t seen a lot in the way of volatility and price action this week, but what we have seen is a clear message coming from many central banks. That message is one of hawkishness.