On the technical side, the price on the cable chart has found resistance on the upper band of the Bollinger bands and has since corrected to the downside, with today’s candlestick ticking to the upside at the time of this report. The 50 SMA is still trading above the 100 SMA indicating that the bullish trend is still active. The Stochastic oscillator, which is at its extreme oversold levels, also supports the narrative. Today’s session is rather important to see where it will close, since it is trading exactly on the 23.6% of the daily Fibonacci retracement level so a close above the current level could indicate the continuation to the upside. On the other hand, if we see further corrections to the downside we might expect some support around the $1,24 price area which consists of the psychological support of the round number, the 50 day moving average & the lower band of the Bollinger bands.
USOIL is a daily
Oil prices rose as optimism grew about tighter supplies from OPEC, its allies and other producers. The supply cut from OPEC which was to start in may is one of many factors that have contributed to the price increase that we experienced in recent months.