Friday, May 10, 2019

USOIL - 10 May 2019

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Fundamental Highlights

Crude oil is seen struggling to extend the recovery above the 62 handle after a fresh risk-aversion wave gripped the European markets on the Yonhap report that North Korea fired unknown projectiles. Over the last hours, the black gold is seen making minor recovery attempts, but upside appears to lack follow through, as markets refrain to place any big bets on the barrel of WTI heading into the crucial 2-day trade talks between the US and China that commences yesterday. The oil bulls manage to find some support from the ongoing rift between the US and Iran, with the US having imposed fresh sanctions on the Iranian metal industry a day before. Also, with the EU rejecting Iran’s ultimatums on the nuclear program, the buyers continue to lurk at lower levels. Looking ahead, all eyes remain on the US-China trade developments, with the US tariff hike looming this Friday, which may influence the risk trend and eventually impact the risky asset.

Technical Analysis

Crude oil prices are still trading in the same range with the 61 level being constantly tested and the upper range narrowing down. The price is currently hovering around the 61.55 support level with a super neutral momentum as we can see on the RSI chart that usually anticipate a sharp move. Our focus is till on the downside with the 60.58 support level remaining our main level to watch.

Support: 60.97/ 60.58
Resistance: 61.55/ 61.97

Chart (H4)
USOIL