Oil price heading to $100?
“Oil price cemented its course for a rebound following hawkish signal in the market.”
Oil prices extended its recovery on Thursday as recent signal suggests possibility of supply tightness in the market. According to reports, Organization of the Petroleum Exporting Countries and its allies may cut their production to prop up the commodity’s price. Moreover, recent data from US shows larger-than-expected drop in oil inventories due to record high export. The data indicates high overseas demand as several countries in Europe and Asia struggles with severe fuel shortages.
Quick recap on USOIL
US oil price failed to extend its losses, with current structure remains skewed towards the upside.
USOIL Weekly Technical Analysis
From weekly perspective, MACD shows diminished downward momentum, suggesting prominent signal towards the upside.
USOIL Daily Technical Analysis
From daily perspective, its price is currently flirting around 200-MA line, which may persist for the time being.
ORDER: BUY STOP
STOP LOSS: 88.50
Target 1: 105.00
Target 2: 109.00
ZFX Analyst’s Comment
Oil price begins to stage its recovery as overall structure remains skewed towards upside from weekly perspective.
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.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!