WTI trades at a three month high currently, around the 60 psychological value.
From a technical perspective, we want to see the USOIL drop from the resistance given by the descending trend line, all the way to the 0.5 fib level of previous daily impulse which also aligns with previous structure.
Previous Daily High 61.05
Previous Daily Low 60.04
Previous Weekly High 60.46
Previous Weekly Low 58.11
Previous Monthly High 58.76
Previous Monthly Low 54.12
Daily Fibonacci 38.2% 60.66
Daily Fibonacci 61.8% 60.43
Daily Pivot Point S1 60.04
Daily Pivot Point S2 59.53
Daily Pivot Point S3 59.03
Daily Pivot Point R1 61.05
Daily Pivot Point R2 61.55
Daily Pivot Point R3 62.06
Yesterday, the US API weekly statistical bulletin published positive values with Crude +4.7, Cushing -.3, Gasoline +5.6 and Diesel 3.7. So today from the crude oil inventories a pullback is expected.
However, the longer term trend of the WTI is still bullish, especially from the beginning of 2020, we have a strong fundamental reason for it.
OIL: 2020 PRICE FORECAST UPGRADED ON OPEC+ CUTS, IMPROVED ECONOMIC OUTLOOK – JP MORGAN
17 December 2019, 06:44
The conclusions of the report are as following :
The OPEC, Russia and other producers, a group known as OPEC+, have agreed to cut output by an extra 500,000 barrels a day in the first quarter of 2020, because of the current forecast of next year's end quarters surplus of 0.6 million barrels per day. In conclusion the US investment bank, JP Morgan raised its oil price outlook for 2020. Next year price target is 63.50.
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From a technical perspective, we want to see the USOIL drop from the resistance given by the descending trend line, all the way to the 0.5 fib level of previous daily impulse which also aligns with previous structure.
Previous Daily High 61.05
Previous Daily Low 60.04
Previous Weekly High 60.46
Previous Weekly Low 58.11
Previous Monthly High 58.76
Previous Monthly Low 54.12
Daily Fibonacci 38.2% 60.66
Daily Fibonacci 61.8% 60.43
Daily Pivot Point S1 60.04
Daily Pivot Point S2 59.53
Daily Pivot Point S3 59.03
Daily Pivot Point R1 61.05
Daily Pivot Point R2 61.55
Daily Pivot Point R3 62.06
Yesterday, the US API weekly statistical bulletin published positive values with Crude +4.7, Cushing -.3, Gasoline +5.6 and Diesel 3.7. So today from the crude oil inventories a pullback is expected.
However, the longer term trend of the WTI is still bullish, especially from the beginning of 2020, we have a strong fundamental reason for it.
OIL: 2020 PRICE FORECAST UPGRADED ON OPEC+ CUTS, IMPROVED ECONOMIC OUTLOOK – JP MORGAN
17 December 2019, 06:44
The conclusions of the report are as following :
The OPEC, Russia and other producers, a group known as OPEC+, have agreed to cut output by an extra 500,000 barrels a day in the first quarter of 2020, because of the current forecast of next year's end quarters surplus of 0.6 million barrels per day. In conclusion the US investment bank, JP Morgan raised its oil price outlook for 2020. Next year price target is 63.50.
If you find this complete analysis on point, please like and subscribe for more free market review's.
Comment your view.
Trade closed: target reached