Tuesday, November 6, 2018

USOIL - 06 November 2018


Fundamental Highlights

Early morning session sees US oil barrels trading back at near-term lows as Crude traders struggle to find bullish confidence in the face of a significant extension in global Crude supply lines, despite the US' new sanctions on Iran that came into effect yesterday. WTI is resuming to trade below the $63 level after attempting to break to the upside during yesterday's session on the back of waves of barrel supply at a record paste from the US, Saudi Arabia, and Russia.

Technical Analysis

US Crude oil prices continued to move to the downside after an attempt to break to the upside with a spike over the $64 level. The price is currently back at near- term lows with a slight divergence between the momentum and the price. A downward extension towards the $62 level could take place before we see a correction and a retest of the $63.5 and $64.77 levels.

Support: 62.98 / 61.84
Resistance: 64.65 / 65.83

Chart (H4)