US Crude Oil offers a strong upside barrier at $81.70
US crude prices have crept higher from the $72.13 base. Price is likely to consolidate ahead of the OPEC+ plus meeting. Russia and Saudi Arabia are likely to press for extending or possibly increasing, supply cuts next year. This is to offset the expected weak demand in 2024.
From a technical perspective, there is ample scope for a larger correction towards $81.81. We have bespoke resistance located at $81.69 and $81.89. When these levels collide, they offer weight to the barrier. The projected AB leg of a Bat formation is located at $81.81.
Conclusion: although there is ample scope for further gains, I am looking for $81.81 to cap buying interest. I would then look to trade the corrective BC leg to the downside.
Support: $74.88 (swing low), $72.13 (4-month base), $69.82 (bespoke)
Resistance: $81.69-89 (bespoke), $81.81 (projected AB), $87.81 (Bat)
From a technical perspective, there is ample scope for a larger correction towards $81.81. We have bespoke resistance located at $81.69 and $81.89. When these levels collide, they offer weight to the barrier. The projected AB leg of a Bat formation is located at $81.81.
Conclusion: although there is ample scope for further gains, I am looking for $81.81 to cap buying interest. I would then look to trade the corrective BC leg to the downside.
Support: $74.88 (swing low), $72.13 (4-month base), $69.82 (bespoke)
Resistance: $81.69-89 (bespoke), $81.81 (projected AB), $87.81 (Bat)