Market News & Analysis

Oil closing in a on potential resistance.

Jan 8, 2019 | CFD News

Oil has seen a solid run since the 26th of Dec adding 628 cents after looking like it was set to move further toward 40$ even. Recently supply cuts and further positive progression between the U.S and China on the trade talk front has been helping support price. The current short-term counter rally continues to follow normal trend making new higher highs and higher lows.  

One point we’re watching is the current high that has lined up and shown resistance from a previous resistance point at 49.80. This is the first point for a wide congestion area that could produce active sellers from verious supply areas. Some of the keys levels above are; 48.80, 50.70, 52.25 and 53.26. On the current short-term buyers are trying to hold from 48.60. 

Traders could be on the lookout for a new lower high that starts to suggest more seller pressure is building. If buyers can hold we would be looking for them to make a new higher high moving further into the higher congestion area. Another thing to keep in mind that from the daily and weekly this current move remains a counter-rally in a long-term downtrend. 

Oil 4H Chart

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.







Level 6, 360 Collins Street
Melbourne, VIC
3000 Australia

Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with EightCap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment). A Product Disclosure Statement (PDS) and a Financial Services Guide (FSG) for our products are available to download from our Legal Documentation page. You must assess and consider them carefully before making any decision about using our products or services.

EightCap is a registered business name of EightCap Pty Ltd (ABN 73 139 495 944). We are regulated by the Australian Securities & Investments Commission (ASIC) - our AFSL number is 391441. This licence authorises us to provide financial services to people in Australia.

The information on this website is of a general nature only and is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. EightCap is not a financial adviser, and does not issue advice, recommendations, or opinion in relation to acquiring, holding or disposing of a margined transaction. We provide general advice only and accordingly you should consider how appropriate the advice (if any) is to your objectives, financial situation and needs before acting on the advice.