News & Analysis
Eightcap CFD technical insights OIL; range low tested, buyers looking to test the high?
Oil is dealing with a mix of influences at the moment.
The market is waiting for a key decision regarding Iran. President Trump has given Britain, France and Germany a May 12 deadline to fix what he views as the deal’s flaws or he will reimpose sanctions. Price has seen some support on lower output from Venezuela and African producers numbers showing a one year low in April. U.S production continues to push, production has hit a record 10.62 million BPD, a jump of more than a quarter since mid-2016 Russia continues to lead daily production with around 11 million BPD.
Technically oil continues to trade in a range, with support seen at the range low of 67.32 from the daily chart. This level was a previous high. From a technicians point of view its good to see a high turn into support. It creates a step, we can also see this occurred at 66.15. Which also lead to the market making new highs.
Currently, the pattern is yet to complete by making new highs. On the short-term we would want to see the range low hold for buyers or the pattern would be under pressure from failing. A close above 68.50 show’s buyer commitment and momentum that buyers could be looking to test for a breakout.
Good Trading from Eightcap.
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