News & Analysis
Eightcap CFD technical insights: Oil buyers holding but seller momentum remains
Mixed fundamentals remain for oil, global slow down worries and U.S – China trade war is seen to dent demand. Last weeks U.S inventories showed a surprise increase in stockpiles which kicked off a 340 cent move sending price back below $69. On the other side, Iranian sanctions recommence on the 4th of November, this with OPEC wanting to maintain a stable price. Currently off the back of last weeks inventory data bears look to hold sway from a fundamental point of view.
Technically mixed signals are presenting. Long-term price remains in an uptrend. The Medium-term price is in a corrective downtrend. The short-term show’s price forming a low after reconfirming support at 68.50. This support also lines up with divergence on the CCI. Above buyers are being held back by resistance from 69.90. Last night sellers retested support and last weeks low but failed to hold the break. Price ending the session back above 69. While support holds we’re looking for price to continue to consolidate and or, make a new leg higher. If sellers are able to retest and break support and the low, the medium-term downtrend will look to be extending.
Good Trading from Eightcap.
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