Oil prices rose on Monday as investors were optimistic about a tighter supply outlook following a temporary ban on fuel exports issued by Moscow. The market is still cautious about potential rate hikes by the Fed that could affect demand, however there was a three-week rally on the price thanks to Saudi Arabia and Russia extending production cuts until the end of the year.. Moscow's temporary ban on gasoline and diesel exports to most countries added to concerns about low product supply, particularly for heating oil during the winter season. In the United States, the number of operating oil rigs decreased to 507, the lowest since February 2022 while expectations of positive economic data from China, the largest crude importer, also boosted sentiment. However, oil prices may face technical resistance at the November 2022 highs at around $93.
On the technical side the price has found sufficient resistance on the upper band of the Bollinger bands and has since corrected to the downside with some signs of bullish momentum building up in the most recent sessions. The price is trading above all moving averages and the bullish trend line indicating the bullish momentum is still ongoing. In addition the 50 day moving average is trading above the 100 day moving average further validating the bullish movement.
In any case the price area of $93 is the major technical resistance level consisting of the 50% of the weekly Fibonacci retracement level as well as the previous high of November 2022. In the event that the price continues on the bearish correction move then there might be a strong support around the $86 area which consists of the 38.2% of the weekly Fibonacci retracement level, the lower band of the Bollinger bands and is also just above the bullish trend line.
On the technical side the price has found sufficient resistance on the upper band of the Bollinger bands and has since corrected to the downside with some signs of bullish momentum building up in the most recent sessions. The price is trading above all moving averages and the bullish trend line indicating the bullish momentum is still ongoing. In addition the 50 day moving average is trading above the 100 day moving average further validating the bullish movement.
In any case the price area of $93 is the major technical resistance level consisting of the 50% of the weekly Fibonacci retracement level as well as the previous high of November 2022. In the event that the price continues on the bearish correction move then there might be a strong support around the $86 area which consists of the 38.2% of the weekly Fibonacci retracement level, the lower band of the Bollinger bands and is also just above the bullish trend line.