Oil Reverses Losses. Could We See a Push Higher?
Hi traders, today’s focus is on oil as price has, for now, reversed seller momentum and could be starting to form a support bounce.
Overall the price remains range-bound between 93.50 and 83.65. But price continues to trade outside of the last major downtrend, and we have two higher lows after the September low.
Today sellers took control in the Asian session, but with a risk asset recovery into the LON session, we have also seen oil’s fortunes reverse back to the buyer side.
We can see a solid area for demand from and below support, which lines up with the higher lows. Today’s reversal maintains 85.40 support and will continue to back up yesterday’s higher low if we see a higher close today. These are all good signs, and if buyers can continue, we will be looking to see if they can retest the supply area. A break of supply could set off a new leg higher that we hope could retest resistance.
If buyers fail today and we see a new move back below 85.40 support, this will keep us on the lines as we wait to see if supply can continue to hold.
EIA crude inventories are due Thursday morning at 2:30 am AEDT.