Several times I have written that the pullbacks must be used as buying opportunities. In my latest analysis, I tried to explain in the historical charts that oil price is likely to hit 82-83 USD medium term. You may view the attached idea for details.
As I tried the mentioned before:
"Total supply of 1 million barrels from Saudi Arabia and Russia in the upcoming period could cover only the half of the 2.43 million barrels/day supply cut of Iran (if all states conform to the US).
In the current situation of Iran’s daily oil exports of 620 thousand barrels China, 560 thousand barrels of the EU, 470 thousand barrels of India, 400 thousand barrels of South Korea, 230 thousand barrels of Turkey and 140 K to Japan.. Here, 1.8 million barrels of petroleum may be withdrawn from daily world production when it is thought that China is the strongest candidate to comply with the US call. This figure cannot be easily covered by Saudi Arabia and Russia, which can increase capacity. We may see further increase in the Oil Prices."
72.00 USD was our first buy level and Crude Oil is trading at 74.08 as of writing. It rose almost 200 pips so far.
Technically Crude Oil Forecast of today:
Upside: 74.20 and 74.62 are the minor targets. And 75.02 is the main resistance. If DXY falls below 93.70, we may see the Crude Oil prices hit 75.39 and 75.80.
Downside: 73.81 73.43 and 73.02.
Conclusion: pressure will remain as long as the prices hold above 72.00. A break below 72.00 may lead the price 70.31 and 68.50 midterms. And those levels are the perfect levels to buy Crude Oil targeting 82.00 USD.
DISCLAIMER: This is a study, not an advice or recommendation to invest money
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