Oil market is getting ready for volatility in early next month
Since the beginning of May the price of oil has gained almost 10% mostly due to the surprise cut by OPEC that came into effect in the beginning of this month. Massive drawdown in US crude stockpiles published on the 23rd of May also pushed the price of the “liquid gold” to the upside while the Saudi Energy minister warned that the short-sellers betting on oil prices falling should “watch out for pain” possibly signaling that the next OPEC meeting on the 4th of June could bear further output cuts.
‘Attention of investors and traders is also shifted on the U.S debt ceiling talks that are not yet finalized or showing signs of progress to reach a decision on the public debt issue.’ said Antreas Themistokleous, market analyst in Exness ‘With the OPEC’s meeting approaching on the 4th of June and the “deadline” for the debt ceiling issue on the 1st of June , one can deduce that the beginning of next month should be pretty volatile for the crude oil market ’
On the technical point of view the price found sufficient resistance on the $74,700 price area which is the 50% of the daily Fibonacci retracement and the upper band of the Bollinger bands and is currently down to $73,400 area at the time of this report. The Stochastic oscillator is in the extreme overbought area indicating that a correction to the downside is possible in the coming sessions whereas the 50 day moving average is on the move to cross above the 100 day indicating bullish momentum building up.
All in all the mixed signals from technical analysis do not point to any clear direction in the coming sessions so it is even possible to see some sideway movement before the major economic data next week about European inflation and unemployment rates as well as the NFP on the 2nd of June.
‘Attention of investors and traders is also shifted on the U.S debt ceiling talks that are not yet finalized or showing signs of progress to reach a decision on the public debt issue.’ said Antreas Themistokleous, market analyst in Exness ‘With the OPEC’s meeting approaching on the 4th of June and the “deadline” for the debt ceiling issue on the 1st of June , one can deduce that the beginning of next month should be pretty volatile for the crude oil market ’
On the technical point of view the price found sufficient resistance on the $74,700 price area which is the 50% of the daily Fibonacci retracement and the upper band of the Bollinger bands and is currently down to $73,400 area at the time of this report. The Stochastic oscillator is in the extreme overbought area indicating that a correction to the downside is possible in the coming sessions whereas the 50 day moving average is on the move to cross above the 100 day indicating bullish momentum building up.
All in all the mixed signals from technical analysis do not point to any clear direction in the coming sessions so it is even possible to see some sideway movement before the major economic data next week about European inflation and unemployment rates as well as the NFP on the 2nd of June.