Crude Oil's Bull Run No Signs of Stopping: Will It Soon Hit $90?
Hi Realistic Traders, let's discuss the latest surge in WTI Crude Oil Price
Why have Oil prices surged?
In the second quarter of 2024, Russia plans to cut its crude oil production in line with OPEC+ agreements, gradually reducing output each month from April to June. This decision follows earlier cuts made in April 2023 and March 2024, with export reductions also phased in gradually.
Meanwhile, tensions between Ukraine and Russia escalated over the weekend with both sides conducting airstrikes. Russia targeted Ukraine's western region of Lyiv and the capital, Kyiv, on Sunday, following drone strikes on Russian oil refineries in the Samara region on Saturday. In retaliation, Russia attacked Ukraine's energy infrastructure on Friday. These developments have heightened concerns about further escalation.
After talking about the fundamental drivers, now let's delve into the technical analysis:
In our technical analysis, we have identified several significant indicators suggesting a bullish trend in WTI Crude Oil. The consistent movement of the price above the EMA200 line indicates robust bullish momentum within the market. Moreover, the formation of both a Symmetrical Triangle and a Falling Wedge pattern implies a continuation of the bullish trend. The recent breakout from these patterns further reinforces the potential for an upward movement toward the target area. Additionally, the upward momentum indicated by the momentum indicator confirms the prevailing bullish sentiment in WTI Crude Oil. In summary, these technical signals collectively also support a favorable bullish outlook for the designated target.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on
USOIL
."
Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below
Why have Oil prices surged?
In the second quarter of 2024, Russia plans to cut its crude oil production in line with OPEC+ agreements, gradually reducing output each month from April to June. This decision follows earlier cuts made in April 2023 and March 2024, with export reductions also phased in gradually.
Meanwhile, tensions between Ukraine and Russia escalated over the weekend with both sides conducting airstrikes. Russia targeted Ukraine's western region of Lyiv and the capital, Kyiv, on Sunday, following drone strikes on Russian oil refineries in the Samara region on Saturday. In retaliation, Russia attacked Ukraine's energy infrastructure on Friday. These developments have heightened concerns about further escalation.
After talking about the fundamental drivers, now let's delve into the technical analysis:
In our technical analysis, we have identified several significant indicators suggesting a bullish trend in WTI Crude Oil. The consistent movement of the price above the EMA200 line indicates robust bullish momentum within the market. Moreover, the formation of both a Symmetrical Triangle and a Falling Wedge pattern implies a continuation of the bullish trend. The recent breakout from these patterns further reinforces the potential for an upward movement toward the target area. Additionally, the upward momentum indicated by the momentum indicator confirms the prevailing bullish sentiment in WTI Crude Oil. In summary, these technical signals collectively also support a favorable bullish outlook for the designated target.
It is essential to note that the analysis will no longer hold validity once the target/support area is reached.
Disclaimer:
"Please note that this analysis is solely for educational purposes and should not be considered a recommendation to take a long or short position on
USOIL
." Please support the channel by engaging with the content, using the rocket button, and sharing your opinions in the comments below
Trade closed: stop reached
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