OIL RESILIENCE AMID GEOPOLITICAL TENSION, OPEC+ AND WINTER

Nov 22,2019

Market Strategist

Despite the lack of clarity in trade sentiment, the crude oil price action rejected recent bearish momentum, allowing the black gold prices to rebound from its upward support trendline, struggling to break its consolidation phase to record new high for this month finally.

From a broader standpoint, oil’s price action has been trading in a consolidation channel, ranging within the 50’s marks (51 to 59 handles), this consolidation period recorded from May this year has been false broken twice. However, against all adversities, the market has been able to keep trending within a clear uprising channel, where prices have fully respected the channel’s upward support trendline. Just this week, price managed to break the dynamic resistance level by the 200 SMA, registering new high and reaching levels from last September.

The current bullish momentum can be confirmed by the engulfing candle, the breakout of the 200 SMA, with both the 18 and 50 EMA sloping up. With a MACD signaling the same bias and Stochastics still within an acceptable level not yet overbought, technically speaking, is giving the market enough opportunity to reach the resistance levels from the more prominent pictured consolidation channel at 59 handle.

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OIL RESILIENCE AMID GEOPOLITICAL TENSION, OPEC+ AND WINTER

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