Friday, February 1, 2019

USOIL - 01 February 2019


Fundamental Highlights

Crude oil prices printed new highs during yesterday's session at $55.35 but quickly reversed failing to settle above the $55 critical level. The retreat in prices is attributed to the positive progress in US-China trade war and the improved performance in global equities. Moreover, a broadly weaker greenback and increased supply disruption risks amid US sanctions on Venezuela, remain the main drivers behind the bullish rally in oil prices.

Technical Analysis

Crude oil prices pushed above the $55 level and printed new highs of $55.35 only to quickly reverse to end the day in the red. The price is currently hovering below the $53.89 resistance level with a neutral momentum as we can see on the RSI chart. We expect a continuation of the recent upward move with our focus on the $55 critical level.

Support: 53.89/ 53.26
Resistance: 55.25/ 56.69

Chart (H4)