OIL Technical analysis 7 January 2019
2019-01-07 01:22 am | Resource: Technical Analysis | No Views : 143
Time frame Used - four hours
Oil is moving in a bullish direction in the near term.
The purchasing power managed to control the oil movement to breach the resistance level of 46.10 to the upside as the bulls were able to compensate part of the losses suffered by black gold (oil) to reach the level of 48.50 as oil faces selling pressure on this level.
In view of the technical indicators
Both the RSI and the Stochastic are indicating to the arrival of indicators in the overbought area.
Therefore, we expect that the oil will fall back to the level of 46.10 dollar again and this scenario fails in the case of breaching of oil level of 49.68 dollar, Taking into consideration that the largest picture of oil target level of 51.88.
The alternative scenario is that the oil breached the 49.68 level to upside for targeting the 51.88 level.
Sell Oil around the 48.50 levels for target level of 46.10 dollar with the activation of stop loss in the case of the closure of the highest level of 49.68 dollar.
Resistance: 48.50 - 49.68 - 51.88
Support: 47.04 - 44.47 - 42.60
Oil prices rose sharply on Tuesday, bolstered by Venezuela's political turmoil, which threatens further supplies to the country. Where fears of a possible recession have eased. Investors expect that supplies will continue to be cut through the rest of 2019. OPEC and its allies plan to hold the next Joint Ministerial Monitoring Committee meeting on May 19 in Jeddah, Reuters reported. OPEC and other countries, including Russia, have agreed to…
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