OIL MARKET SUPPORTED BY SPECULATIONS

The oil market was able to manage and finally breakthrough after 55 days the dynamic resistance imposed by the 200 SMA. However, after this long-waited breakout, the price has been seesawing within the 58 and 57 levels, amid lack of clarity on the political front signs has diminished the market sentiment.

Even though, when price action is trading above the 200 SMA traders could considered it as a clear uptrend bias on market’s instruments, the WTI benchmark  got looped again in a consolidation period with lack of momentum, with lighter MA (18 and 50 EMA) still bellow the 200 SMA but steadily sloping up, for a definite short term bullishness. MACD is also signaling a fading bullish bias where the Stochastic is already positioned into the overbought zone — technically speaking not much confirmation yet for a changing trend but a continuation of a long-term consolidation period.

Oil market underpinned current condition has been brought by pure speculations over the forthcoming OPEC+ meeting, where not definite confirmation over the extended ongoing oil output cut deal further into 2020 has been yet confirmed not denied. One topic that would be most probably touch by Saudi Arabia Prince Abdulaziz bin Salam in Vienna, as his first OPEC meeting acting as Saudi Oil Minister, would be the no compensation for other’s members’ not-compliance about the cut understanding.

Saudi Arabia has had enough in turning a blind eye in favor of other alliance members, cutting its output more than agreed only to off-set the not-compliance from these disloyal members. Investors would keep close attention to this December the 5th meet as the central theme for the commodity market.