The
December contract for light crude oil rallied for today to the 46.00 zone after
the oil inventories came out lower than expected. This has caused traders to
close their short positions rapidly, causing a short squeeze. At the moment,
the 46.00 level may act as a resistance and oil may try to bounce from that
level to the downside, especially because the 55 day exponential moving average
is very close to that zone. If the price bounces to the downside, then the
44.00 level may act as support. To the upside, if the price breaks above the
46.00 level, then the bullish momentum may accelerate and oil could go and
visit the 50.00 level once again.
It looks like it found some resistance at 46.75.
ReplyDeleteIn the previous 12 sessions, Brent had been 14% undervalued.
ReplyDeleteExcellent analysis, will keep it in mind!
ReplyDeleteGood analysis.
ReplyDeleteThanks for your analysis.
ReplyDeleteInteresting analysis, thank you.
ReplyDeleteGood post!
ReplyDeleteGreat analysis.
ReplyDelete