WE SAW OIL RECOVER IN THE LAST WEEK OF MARCH BUT ITS NOW RESUMED THE BEARISH TREND AND LOST 18 % AT THE MARKET CLOSE THIS AFTER MEXICO REJECTS OPEC+DEAL,LOOKING AT G20 ENERGY SUMMIT
DAILYFX
The OPEC+ meeting last Thursday and the G20 meeting on Friday look set to trim oil output in the coming months, as producers react to the global growth slowdown. As we write, OPEC+ source reports are suggesting a 10 million barrel a day cut going forwardwith further wrangling and/or ratification at the G20 meeting. While oil’s fundamentals are still up in the air - but likely to be settled very shortly – the technical backdrop is suggesting a continuation of the recent rally in the oil complex.
Brent crude hit a multi-decade low of $24.75/bbl. at the beginning of April after having hit a peak of $71.06/bbl. on January 8 this year. Fears that the coronavirus would hammer global growth – currently being borne out – and infighting between OPEC and OPEC+ members left oil with little support. The daily chart now is beginning to tell a slightly different story. Oil remains volatile and any good news can cause a sharp spike higher. On April 2 oil traded in a 40%+ day range, as good news filtered through and although these gains were paired, oil pushed back above the April 2 high today, suggesting further upside. On the way, oil has made 8 higher lows in a row, another positive set-up, and in doing so has now moved back above the 20-dma for the first time since late-February. These higher lows have helped to form a short-term bullish pennant. As long as the supportive trend remains in place, oil looks to move higher.
https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/04/12/Crude-Oil-Analysis-Suggest-Positive-Momentum-Remains-Despite-Uncertain-Backdrop-.html
SO HOPEFULLY WE'LL STILL SEE A RISE IN OIL IN THE COMING WEEKS SINCE WE ARE CURRENTLY AT A PREVIOUS SUPPORT LEVEL WE
DAILYFX
The OPEC+ meeting last Thursday and the G20 meeting on Friday look set to trim oil output in the coming months, as producers react to the global growth slowdown. As we write, OPEC+ source reports are suggesting a 10 million barrel a day cut going forwardwith further wrangling and/or ratification at the G20 meeting. While oil’s fundamentals are still up in the air - but likely to be settled very shortly – the technical backdrop is suggesting a continuation of the recent rally in the oil complex.
Brent crude hit a multi-decade low of $24.75/bbl. at the beginning of April after having hit a peak of $71.06/bbl. on January 8 this year. Fears that the coronavirus would hammer global growth – currently being borne out – and infighting between OPEC and OPEC+ members left oil with little support. The daily chart now is beginning to tell a slightly different story. Oil remains volatile and any good news can cause a sharp spike higher. On April 2 oil traded in a 40%+ day range, as good news filtered through and although these gains were paired, oil pushed back above the April 2 high today, suggesting further upside. On the way, oil has made 8 higher lows in a row, another positive set-up, and in doing so has now moved back above the 20-dma for the first time since late-February. These higher lows have helped to form a short-term bullish pennant. As long as the supportive trend remains in place, oil looks to move higher.
https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/04/12/Crude-Oil-Analysis-Suggest-Positive-Momentum-Remains-Despite-Uncertain-Backdrop-.html
SO HOPEFULLY WE'LL STILL SEE A RISE IN OIL IN THE COMING WEEKS SINCE WE ARE CURRENTLY AT A PREVIOUS SUPPORT LEVEL WE
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