Hello Traders,
As the oversupply fears for Crude Oil intensify and the prices trading lower within this year, yesterday’s tensions escalations in the Middle East with Iran’s retaliation created a spike in Oil prices. Notably, the $66 area managed to hold and causing a big reaction of more than 4% towards the $72 area. Today’s Crude Oil Inventories from US to be announced at 15:30 GMT can add to the overall volatility. That is due for this week, while adding to the list today’s OPE JMMC meetings, Thursday’s US ISM Services PMI as well as Friday’s US NFP.
Furthermore, between October 22nd – 24th in Kazan, Russia the BRICS Summit is expected to take place and any further talks about the de dollarization process of BRICS Oil trade agreements might shift things around.
Oil 4HR – Weekly Outlook – RSI Suggests Buyers In Control – Might Be Looking For the $80 Area If Trendline Breaks (Source NYMEX )
Monthly Outlook – Daily Timeframe – RSI & Price Trendline In Focus – If Broken Buyers Aim For $80 Otherwise Sellers Looking For $63.76 – 2023 Lows (Source: NYMEX)
Current technical data suggests that buyers might be looking for the breakout towards the $80 mark while if reached the area might produce a reaction down the line, as we are trading within an interesting and eventful month in which might be providing the market with significant levels of volatility. Traders should be aware of the technical outlook and following up with the economic data and BRICS summit later this month.
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