Crude oil has reaffirmed support since last week. The daily Relative strength index is showing a fresh uptick, and it stays above equilibrium levels. And the oscillator has tuned to bullish crossover, which suggests that the downside momentum has stopped. The price has supported between $60.00-$59.00 levels in recent sessions, and a break below may pave the way for lower prices to $57.
On the upside, the near-trend is supportive with the above given positive signs, but the price needs to take out the 1st resistance located at $65.30 above here $66.30 exists.
The daily indicators point the price higher in the immediate term, but the market must take our essential resistance zone spread between $66.30-66.70 to set the scene for a clear bounce back.
In the first quarter, oil price rallies nearly 26%, compared to 60% downfall in the same quarter last year. From here, what will the direction?
Traders are looking at 15 OPEC+ meetings due on 01 April 2021. In case if OPEC+ starts to ease the output cuts, how many barrels per day matters. So far, the alliance managed to keep 7.1 million bp/d output off from the market, plus Kingdom is adding its extra 1 million barrels per day. In case of production cut extending through second quarter 2021, the price would pop through the roof and aim towards $75 and $80.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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