Here is what’s happening to WTI Crude Oil market.
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This article is originally referred from Orbex Technical Analysis.
Crude oil prices declined to $63.00 a week ago before posting a strong rebound.
The gains in WTI crude oil prices came as price action was supported by rising fundamentals and geo-political developments.
By the weekly close, crude oil prices reached highs of $67.69 before easing back and price action remains bullish in the near term outlook.
However, ahead of further gains, we expect crude oil prices to post a modest correction following which further gains could be in store.
The technical support around the $65.50 level will most likely be the support level of interest.
The gains in crude oil prices came amid rising tensions between the United States and Russia.
News about the rebels from Yemen firing missles to target key locations in Riyadh also sent oil prices higher.
Saudi Arabia was seen intercepting the missles before any damage could be done.
Still, the news of the ongoing tensions pushed crude oil prices higher alongside a weaker U.S. dollar.
From a technical stand point, oil prices have breached past a resistance level at $65.80 – $65.46.
The breakout from this level could signal a near term decline back to establish support.
A rebound off this support level is likely to signal a strong rally in oil prices in the near term.
Therefore, it is ideal to be on the long side of WTI crude oil from the $65.50 level where we expect to see a lot of buying interest.
Original Source: Orbex Technical Analysis