Monday, October 1, 2018

USOIL - 02 October 2018


Fundamental Highlights

Crude roil prices rose sharply during yesterday's session and continue to rise this morning printing new highs not seen since 2014. The combination of stronger expected demand and a perceived tightening supply has led the bulls to succeed in getting the prices closer to the $80 round figure. Today's API Crude inventories will also affect the short-term direction of oil as any decrease in the numbers will lead prices higher.

Technical Analysis

Prices finally broke above the $75.24 level which was last seen in July. Extreme overbought conditions don't seem to have any effect on the price but eventually a divergence will occur and a small consolidation or correction will happen but we still remain bullish. The next level to watch is the 76.35 resistance level.

Support: 73 72.73
Resistance: 73.5 74.25

Chart (H1)