In the current situation of Iran’s daily oil exports of 620 thousand barrels China, 560 thousand barrels of the EU, 470 thousand barrels of India, 400 thousand barrels of South Korea, 230 thousand barrels of Turkey and 140 K to Japan.. Here, 1.8 million barrels of petroleum may be withdrawn from daily world production when it is thought that China is the strongest candidate to comply with the US call. This figure cannot be easily covered by Saudi Arabia and Russia, which can increase capacity. We may see further increase in the Oil Prices.
The price action of the Crude confirms us the same. As we have written in our latest analysis, Crude opened the week with a gap, but the Bulls jumped into the arena.
We see the golden cross in the weekly charts. This indicates a new wave.
The scene is almost the same in the H4 Chart timeframe. 50,100 and 200 formed Golden Cross.
US Crude Oil CLc1 is trading at 70.70 – Spot Forex 70.31 – as of writing. This is the Fibonacci 78.6% of the latest decline. An H4 closing above 70.85 – Spot Forex 70.40 – might carry the prices CLc1 71.70 and 72.60 of the latest highs.
Possible pullbacks can be used as buying opportunities. Possible pullback levels to use as buying opportunities are 70.30 and 69.40.
We can not talk about a short term trend reversal as long as the price holds above 69.40.
We will publish our trade idea for premium members separately.