Slobodan Drvenica
Windsor Brokers
WTI Oil
Oil price extends strong rise into second consecutive day, advancing 1.6% during European session on Wednesday, following 3.45% advance on Tuesday (the biggest daily gain since Aug 12).
Growing fears that further escalation of the war in the Middle East could disrupt crude supply from the region, lifted oil prices significantly during past two sessions.
The latest rally improved the structure on daily chart, as the price rose above 50% retracement of $77.57/$65.26 bear-leg and psychological $70 level, underpinned by strong positive momentum and 10/20DMA’s in bullish configuration.
Bulls pressure pivotal resistance at $72.38 (Sep 24 lower top), break of which to generate fresh bullish signal on completion of bullish failure swing pattern on daily chart and soften strong bearish structure on weekly chart (multiple MA Death crosses / strong negative momentum).
Broken daily Kijun-sen ($71.08) should ideally contain dips and maintain bullish bias.
Caution on breach of $70 level (reinforced by 10DMA), which reverted to solid support and marks a breakpoint.
Fundamentals, however, are likely to play a key role in coming days, with further conflict escalation to provide fresh boost to oil price and open way for stronger upside acceleration.
Res: 72.38; 72.87; 73.37; 74.27.
Sup: 71.41; 70.88; 70.00; 69.26.
Interested in Oil technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.