Market News & Analysis
Oil closing in a on potential resistance.
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.
Good Trading from EightCap.
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