Macro approach:
- Oil prices held broadly steady after US President Trump suggested that military operations could be short-lived, easing fears of prolonged supply disruptions.
- Meanwhile, EIA data showed a further drawdown in US crude inventories, reinforcing signs of tighter near-term supply conditions. The latest report showed crude stocks fell by 4.45 mln barrels, against expectations for a small build.
- Oil prices may remain supported by tighter US inventories, although reduced geopolitical risk could limit further upside.
Technical approach:
- After a modest correction toward the support at 87.70, USOIL rebounced toward near the swing high. The price is above both diverging bullish EMAs, suggesting a potential uptrend continuation.
- If USOIL breaks above 89.90, the price may surge toward the next resistance at 92.00.
- Conversely, remaining below 89.90 may prompt a correction toward the immediate support at 87.70 and EMA21.
Analysis by: Quoc Dat Tong, Senior Financial Markets Strategist at Exness
- Oil prices held broadly steady after US President Trump suggested that military operations could be short-lived, easing fears of prolonged supply disruptions.
- Meanwhile, EIA data showed a further drawdown in US crude inventories, reinforcing signs of tighter near-term supply conditions. The latest report showed crude stocks fell by 4.45 mln barrels, against expectations for a small build.
- Oil prices may remain supported by tighter US inventories, although reduced geopolitical risk could limit further upside.
Technical approach:
- After a modest correction toward the support at 87.70, USOIL rebounced toward near the swing high. The price is above both diverging bullish EMAs, suggesting a potential uptrend continuation.
- If USOIL breaks above 89.90, the price may surge toward the next resistance at 92.00.
- Conversely, remaining below 89.90 may prompt a correction toward the immediate support at 87.70 and EMA21.
Analysis by: Quoc Dat Tong, Senior Financial Markets Strategist at Exness
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.