Slobodan Drvenica
Windsor Brokers
WTI oil price rose above $79 for the first time in two weeks on Thursday, as fresh bullish acceleration extends into third consecutive day.
The OPEC+ decided to extend its supply cuts in 2024, as the cartel met today, after meeting scheduled for Nov 26 was postponed, adding support to oil price.
The top world oil producers agreed preliminary cut of over 1 million barrels per day, including Saudi Arabia extending the voluntary cut since July, with smaller contribution from other members.
The OPEC+ members also discussed potential bigger cuts in 2024, with extension to 2 million barrels per day being on the table.
Tighter oil market will offer fresh support to oil and continue to underpin the price in coming months.
Today’s acceleration broke above significant barrier at $78.04 (200DMA) and cracked daily Kijun-sen ($79.12) increasing pressure on psychological $80 resistance.
Expect initial bullish signal on close above 200DMA, which reverted to solid support, with extension through $80 and $81 pivots (psychological / Fibo 38.2% of $95.00/$72.36) to further strengthen bullish structure and open way for further advance.
Improving daily technical studies add to positive near-term outlook, though bulls may face headwinds at $80 zone and enter consolidation before resuming.
Bullish bias expected to remain intact above 200DMA, while fall below converging 20/10DMA’s ($77.07/$76.78) would neutralize bulls.
Res: 79.57; 80.00; 81.00; 81.52
Sup: 78.07; 77.70; 76.78; 74.04
Interested in WTI 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 stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.