Shallow dips
The technical outlook remains extremely favorable; an ascending channel has developed in the daily chart, weekly indicators are still very upbeat, and weekly volatility has continued to pick up. Under these conditions, the pair can be expected to break out above the resistance level around $70 before eyeing at $71.00. A decisive breakout above the last resistance at $71 would allow the price to rally towards $72.50 and $74 per A-B-C pattern.
Pullbacks cannot be ruled out, of course, but should be seen as being merely by way of a correction. Supports are located at $68.75-68.50 and $67.70.
On June 01, OEPC+ meets virtually. May production numbers are set to release.
According to a Reuters survey, the group’s output increased by 280Mbbls/d MoM to an average of 25.52MMbbls/d in May, reported by ING. Traders are looking for the production number for June and July. Any production-increasing news won’t hinder the current bullish theme, easing lockdown restriction in major economies pumping the oil demand.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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