Oil price found some support, will it recover further?
“Russia remains as limelight in global commodity market as recent action sparks some volatility on certain commodity.”
Oil price found some support from the downside as it stages for a possible rebound. Evidently, sentiment within the market grows wary as Europe may face with energy shock after Russia cut down gas delivery through their major pipeline. Thus, European countries especially Germany (EU largest economy) may face with gas rationing and increase in gas price due to high demand. This could prompt a major shift to rely on oil as an alternative source.
Quick recap on USDWTI
Oil price remains traded within a descending triangle structure, with bullish pressure from its downside.
USDWTI Weekly Technical Analysis
USDWTI experienced major correction for several weeks, prior to its recent stability near 95.00.
USDWTI Daily Technical Analysis
From daily perspective, MACD shows diminishing bearish momentum. A close above the 200-MA line would provide confirmation for further upside ahead.
ORDER: BUY STOP
STOP LOSS: 94
Target 1: 109
Target 2: 112
ZFX Analyst’s Comment
Oil price has a strong footing near the threshold of 95 for the past few weeks. We expect extension of bullish momentum for the mid-term with next threshold around 109.00.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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