Slobodan Drvenica
Windsor Brokers
WTI oil
WTI oil price extends advance and hits the highest in nearly three years in early Monday’s trading, following bullish signal generated on last week’s close above psychological $70 barrier (the first weekly close above this level since mid-Sep 2018), with oil benchmarks extending rally into third consecutive week.
Improved outlook for fuel demand on tightness in supply and accelerating economic recovery on increased vaccination, underpin the action.
Eased lockdowns also boosted air transport while motor vehicle traffic returning to pre-pandemic levels in the US, adding to positive signals for global demand, however, fresh virus threats in Europe and India could cause headwinds to larger bulls.
Strong uptrend remains fully in play with dips to provide better buying opportunities.
Bulls eye pivotal Fibo barrier at $73.44 (61.8% of 114.80/$6.52, 2011/2020 downtrend) break of which would generate strong bullish signal and expose 2018 peak at $76.88.
Initial supports lay at 70.70/40 (session low/rising 5DMA) with dips to be ideally contained at $70.00/$69.60 (broken psychological barrier/rising 10DMA).
Res: 71.55; 72.00; 72.38; 73.44.
Sup: 70.70; 70.40; 70.00; 69.60.
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 climbs above 1.0500 on persistent USD weakness
EUR/USD preserves its bullish momentum and trades above 1.0500 on Monday. In the absence of high-impact data releases, the risk-positive market atmosphere makes it difficult for the US Dollar (USD) to find demand and helps the pair push higher.
GBP/USD rises to 1.2600 area as mood improves
Following a short-lasting correction, GBP/USD regains its traction and trades at around 1.2600. The US Dollar struggles to stay resilient against its rivals as market mood improves on Monday, allowing the pair to build on its bullish weekly opening.
Gold slumps below $2,650 despite falling US yields
After recovering toward $2,700 during the European trading hours, Gold reversed its direction and dropped below $2,650. Despite falling US Treasury bond yields, easing geopolitical tensions don't allow XAU/USD to find a foothold.
Five fundamentals for the week: Fed minutes may cool Bessent boost, jobless claims, core PCE eyed Premium
Will the rally around Scott Bessent's nomination continue? The short Thanksgiving week features a busy Wednesday packed with events, and the central bank may cool the enthusiasm.
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.