Mikhail Kurakin
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LiteForex analitics. WTI Crude Oil: general analysis
Current trend
On Tuesday, oil prices grew and reached 73.35, but the market is influenced by ambiguous factors.
The risks of Libya oil supply interruptions support the instrument. Yesterday, the representatives of the Libyan National Oil Corp announced that the shipment from a number of ports is unavailable, so the reduction of production in the country by 850,000 barrels per day is expected. On the other hand, the price is under pressure of the United Arab Emirates government's statement that the country has the opportunity to significantly increase production to prevent a supply shortage in the market. Previously, Saudi Arabia said the same thing. Thus, the expected by the end of the year, Iran "black gold" export decrease will be balanced by other OPEC members’ production growth.
In the evening, investors are waiting for API Crude Oil Stocks change release. If the index falls, it will affect the price negatively.
Support and resistance
The key "bullish" level is 73.43 (Murrey [7/8]). After the breakout, the price can grow to 75.00 (Murrey [8/8]). Otherwise, a downward correction to 71.87 (the lower line of Bollinger bands, Murrey [6/8]) and 70.31 (Murrey [5/8]) is expected.
Technical indicators do not exclude the fall possibility. Bollinger bands are directed upwards. Stochastic entered the overbought zone and can reverse. MACD decreases in the positive zone.
Resistance levels: 73.43, 75.00.
Support levels: 71.87, 70.31.
Trading tips
Short positions can be opened at the level 72.80 with the targets at 71.87, 70.31 and stop loss 73.40.
Long positions can be opened when the price is set above the level of 73.43 with the target at 75.00 and stop loss around 72.80.
Implementation period: 3–5 days.
Current trend
On Tuesday, oil prices grew and reached 73.35, but the market is influenced by ambiguous factors.
The risks of Libya oil supply interruptions support the instrument. Yesterday, the representatives of the Libyan National Oil Corp announced that the shipment from a number of ports is unavailable, so the reduction of production in the country by 850,000 barrels per day is expected. On the other hand, the price is under pressure of the United Arab Emirates government's statement that the country has the opportunity to significantly increase production to prevent a supply shortage in the market. Previously, Saudi Arabia said the same thing. Thus, the expected by the end of the year, Iran "black gold" export decrease will be balanced by other OPEC members’ production growth.
In the evening, investors are waiting for API Crude Oil Stocks change release. If the index falls, it will affect the price negatively.
Support and resistance
The key "bullish" level is 73.43 (Murrey [7/8]). After the breakout, the price can grow to 75.00 (Murrey [8/8]). Otherwise, a downward correction to 71.87 (the lower line of Bollinger bands, Murrey [6/8]) and 70.31 (Murrey [5/8]) is expected.
Technical indicators do not exclude the fall possibility. Bollinger bands are directed upwards. Stochastic entered the overbought zone and can reverse. MACD decreases in the positive zone.
Resistance levels: 73.43, 75.00.
Support levels: 71.87, 70.31.
Trading tips
Short positions can be opened at the level 72.80 with the targets at 71.87, 70.31 and stop loss 73.40.
Long positions can be opened when the price is set above the level of 73.43 with the target at 75.00 and stop loss around 72.80.
Implementation period: 3–5 days.
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