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Oil surges ahead of OPEC and IEA reports
Oil is pushing higher again this week, with the rally in the last couple of sessions taking us through technical resistance and providing a further catalyst for gains.
Brent stumbled at $70, but not for long, while WTI is now running into resistance around $65. Dollar weakness may be contributing to the surge, while the potential for supply disruptions in Libya may also add to the bullish case.
Brent Daily Chart
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With prior resistance and the 200/233 simple moving average combination now overcome, further resistance ahead could lie around $72.50-73.50, with $75.50-76.25 being notable above here. A keen eye will remain on momentum indicators for any indication that it’s slipping as we scale new highs.
It promises to be an interesting week for oil though, with the usual inventory data being accompanied by reports from OPEC and IEA which should provide additional insight on the latest production numbers and expectations for demand.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years’ experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
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