Coincidentally the commodity stopped its decline at the 50.00 level. At the level, where US Crude Oil production stops being profitable. At the level, where Saudi Arabia starts getting budget issues. At the level, where Russia announces production cuts while statistics show increases. The cartel and the US will push the price higher. The only question is - how high?
Comment:
The LIGHT.CMD/USD pair has depreciated about 14.27% since the middle of December. A support level formed by the weekly S1 at 43.11 stop the decline during the previous session.
Currently, the crude oil price is trading near a resistance cluster formed by the combination of the weekly pivot point and the 50-hour simple moving average at the 47.50 area.
If the commodity passes this resistance cluster, the next target for bullish traders will be at the 49.00 mark.
However, if the weekly PP holds, the pair continue its southern movement during the following trading sessions.
Currently, the crude oil price is trading near a resistance cluster formed by the combination of the weekly pivot point and the 50-hour simple moving average at the 47.50 area.
If the commodity passes this resistance cluster, the next target for bullish traders will be at the 49.00 mark.
However, if the weekly PP holds, the pair continue its southern movement during the following trading sessions.
A breakout occurred through the lower boundary of a triangle-like formation pattern at 50.59 during the end of yesterday’s trading session.
As for the near future, the LIGHT.CMD/USD crude oil price is likely to continue its southern movement during the following trading sessions.
The potential downside targets will be near the bottom border of the channel pattern at 44.90.