Oil prices are higher today, reversing some of yesterday’s decline that was seen following data showing a much bigger than expected rise in U.S. inventories, which added to signs of growing stockpiles elsewhere. A number of Opec members are meeting in Doha tomorrow (November 18) to lay the ground work on how to implement production cuts agreed on in the Algiers accord of September 29. The US Oil benchmark is presently showing a gain of 1.0%, at $46.20. Yesterday’s peak is at $46.41. US Oil is up 2.9% w/w, but is down by 8.6% m/m. The large, near 6%, move on Tuesday broke the 50% Fib level from the August low at $39.22 and the October high at $51.90.
UK Oil is showing a similar move and the prices of the two majors are converging with UK Oil breaking $47.00 today as news breaks from Qatar that they are speaking with Iran and Iraq about freezing oil output at current levels. The key date remains the end of the month November 30 meeting with all the members of OPEC meeting in Vienna.
Technically, there appears some more energy (excuse the pun) in the rise in Oil prices this week, triggered by the strong positive candle on Tuesday and a positive Parabolic SAR and RSI. I entered a LONG position this morning in US oil at $46.20 with Target 1 at the 61.8 Golden Ratio Fibonacci level and 50 DMA around $47.13 and Target 2 at the 14 DATR at $47.85. The 50.00 Fibonacci provides short term support at $45.35 and then $45.20.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work.
Click HERE to register the next webinar will start in:
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.