KTM Commodity Weekly: Marching towards the potential resistance
The weekly and monthly charts suggest we are marching towards the potential resistance.
- The 123.8 fe exists at $86.20
- September 30, 2018 high was $86.60
Hence the near-term resistance will be between $86.20-86.60. The black gold closed at $84.35 last week, clocked sixth weekly gain. Last time, the price climbed higher for six straight weeks between May and June and twice recorded for seven weeks and one time for six weeks.
Will brent cross the near-term resistance zone?
There is a high probability of oil crossing above the near-term resistance. In this case, the $93 level will be the next resistance to watch out for. Having moved up swiftly since September, there is a possibility of a minor downward correction. However, levels of 81.50 and $77.50 are crucial supports. The recent move since August lows reminds a parabolic move, so near-term traders need attention if you’re taking fresh longs.
Fundamental News:
Refinitiv reported that China refinery throughput hits 16-month low as quota, power crunch bites.
“China daily crude oil processing rate fell again in September, to the lowest since May 2020, as feedstock shortage and environmental inspection crippled operations at refineries and a power crunch dampened refined oil demand from downstream users. Throughput last month fell 2.6% from a year earlier to 56.07 million tonnes, or about 13.64 million barrels per day (BPD), National Bureau of Statistics (NBS) data showed on Monday.”
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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