Market Update: Oil
Hi traders, today we take a look at oil from its daily chart.
Oil continues to grind higher, today being its 2nd positive session in a row at this stage. Buyers at this point have moved back above $43, a level that has also presented as resistance. For now, while higher lows continue we are looking for buyers to continue to hold sway while $43 remains in play. A break and close back below $43 send some signs of worry that buyer momentum might not be as stable as first thought.
If this move does continue to progress higher we’re looking at the May high as a target for buyers to break and hold. From there we see two possible resistance points, 1st the 44.50 previous low area, 2nd $49.10, this level is a little more traditional as its support turned resistance.
We can see an example of that at the consolidation/grind higher where price completed that pattern at $41.60.
News wise, traders will be looking to tomorrow’s OPEC-JMMC meetings, the key will be production cuts, output and current ideas/forecasts on energy demands in the ongoing Covid19 pandemic. The meeting runs all day. Inventory numbers are released weekly and come out at 12:30 am AEST on Wednesday night / Thursday morning. This figure and the gasoline figure can have an impact on oil’s short term price value.
For now, we will continue to watch if price can hold above $43 as buyers continue this slow grind higher.