The rapid growth of “black gold” prices has reversed into a wide flat channel, where the price is moving by more than 9 dollars per barrel upwards and downwards. An additional catalyst for the decline was a significant increase in the USD due to increased demand and strong fundamental data on key sectors of the US economy. In addition, positive data on the change in US oil reserves also put pressure on the course.
Now oil is trading at the level of 66.60 dollars per barrel.
Support and resistance
The current broad sideways consolidation may last until the end of the summer. The narrowing of the current channel is expected, after which the price will go up. An alternative scenario can be the breakdown of key support levels 66.30, 61.75 and the formation of a deeper correction with the target at 58.00.
Technical indicators confirm the growth forecast, MACD keeps a high volume of long positions, Bollinger bands are directed upwards.
Resistance levels: 67.00, 68.00, 69.70, 70.70, 72.70, 73.80, 75.10.
Support levels: 66.30, 65.35, 64.10, 61.75, 60.75, 59.70, 58.00.
It is relevant to increase the volumes of long positions from the current level with the targets at 72.70, 73.80 and stop loss around 64.30.
WTI Crude Oil
|Take Profit||72.70, 73.80|
|Support levels||58.00, 59.70, 60.75, 61.75, 64.10, 65.35, 66.30, 67.00, 68.00, 69.70, 70.70, 72.70, 73.80, 75.10|
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