CRUDE OIL PRICE FORECAST: TECHNICAL STRENGTH MIRED BY IRAN NUCLEAR DEAL, ASIA’S COVID CRISISCrude oil value motion spiked greater on Monday to com
CRUDE OIL PRICE FORECAST: TECHNICAL STRENGTH MIRED BY IRAN NUCLEAR DEAL, ASIA’S COVID CRISIS
Crude oil value motion spiked greater on Monday to commerce round $66.00/bbl. This pushed the commodity again to the higher finish of its latest buying and selling vary, which has largely capped WTI since 08 March. I’ve had this technical resistance degree highlighted on my charts for some time and even identified potential for crude oil costs to edge decrease towards pattern help. As anticipated, WTI crude oil did pull again from this degree, and bulls have been exhibiting as much as defend the 50-day easy transferring common. Crude oil value motion has now gained roughly 7% over the past two buying and selling classes. That is threatening a breakout because the MACD oscillator begins to type a bullish crossover.
CRUDE OIL PRICE CHART: DAILY TIME FRAME (28 DEC 2020 TO 24 MAY 2021)
Chart by @RichDvorakFX created utilizing TradingView
WTI crude oil costs would possibly head towards 2018 swing highs close to $75.00/bbl if the commodity can notch an in depth above $66.25/bbl and invalidate this technical barrier. Breakout affirmation might be supplied by eclipsing the 08 March excessive and better conviction could also be warranted with an accompanying Bollinger Band growth. That stated, in gentle of dangers to outlook surrounding an Iran nuclear deal and mounting covid issues throughout Asia, there’s noteworthy potential for crude oil value motion to snap again decrease. This might depart the commodity caught inside its latest vary.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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