Oil surges higher as OPEC agreed on Wednesday to reduce its oil output to 32.5 million bpd from the current production levels of around 33.24 million bpd.
Price approaching higher selling zone at 47.5x - 47.7x. Look for bearish price action.
Look for pullback into support for buying opportunities.
Nice chart. And how its with Russia ? I was watching bloomberg and some journalist there said that if OPEC will cut output , Russia will cooperate and will cut too. Any clues ?
orvilleawright
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Thanks Andrei. I rally don't know if Russia will cut output or if OPEC will follow through on their promise. However from a trading perspective the market has reacted to the news by trading oil higher. Occasionally I am aware of what causes the market to move but I predominantly trade based on technical analysis. Andrei, currently I pay 0 attention to journalist and their opinion. I pay more attention to the charts. Note that it is possible that the market never had to respond to the news by accepting higher prices. That said from a technical perspective we are currently at the top of a bull channel on the 1H chart, the end of a measured move and also at the top of a wedge on the 4H chart. If I am a bull I would be waiting for a retracement irrespective of how much the TV analyst tout up the prices. As Larry Pesavento says 'TRADE What You SEE'. and ensure that you trading decisions are based only on YOUR OWN trading system which your have tested and you are certain that it has positive expectancy.