News & Analysis

Eightcap CFD technical insights OIL; range low tested, buyers looking to test the high?

May 3, 2018 | CFD News

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.




* The information provided here has been prepared by EightCap’s team of analysts. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and do not reflect the opinions of EightCap.

In addition to the disclaimer on our website, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. EightCap accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

Please note that past performance is not a guarantee of or prediction of future performance. This communication must not be reproduced or further distributed without prior permission.