Technical Analysis says crude oil still buoyant
The success of U.S. Brent crude oil and crude oil in the severance of its over 200 days moving averages for the first time since September 2008 has led to speculation that we are moving towards a goal of $ 75 - $ 80 per barrel.
Surely there is room for change at these levels, given the magnitude of the decrease of $ 147 to $ 32 in the last 9 months, and given the weak U.S. dollar. Up yesterday in the securities markets in the better than expected consumer confidence has seen the price of oil set new 6 months ago.
The minimum Fibonacci retracement of 38.2% to $ 76.28 is certainly within reach, although it will be interesting to see if stock markets are able to track the movement of this magnitude. It is very likely that geopolitical developments currently taking place in Asia is also based on oil prices in the short term.
Indeed, King Abdullah of Saudi Arabia seems to think that $ 75 per barrel is a reasonable value and cuts in OPEC production in September appears to have done the trick for the moment in that underpin oil prices, and increasing demand for China, as it seeks to increase its stock batteries.
The price has dropped slightly from its maximum of $ 63.45 this morning on the back for taking some profits. Any movement and close below $ 60 will probably gain the benefits of taking back to $ 55 throughout the area.
Thursday at a meeting of OPEC in Vienna, in all likelihood, not see any change in production quotas in order while the U.S. dollar remains weak expect to see oil prices remain well supported.
[Source]
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Surely there is room for change at these levels, given the magnitude of the decrease of $ 147 to $ 32 in the last 9 months, and given the weak U.S. dollar. Up yesterday in the securities markets in the better than expected consumer confidence has seen the price of oil set new 6 months ago.
The minimum Fibonacci retracement of 38.2% to $ 76.28 is certainly within reach, although it will be interesting to see if stock markets are able to track the movement of this magnitude. It is very likely that geopolitical developments currently taking place in Asia is also based on oil prices in the short term.
Indeed, King Abdullah of Saudi Arabia seems to think that $ 75 per barrel is a reasonable value and cuts in OPEC production in September appears to have done the trick for the moment in that underpin oil prices, and increasing demand for China, as it seeks to increase its stock batteries.
The price has dropped slightly from its maximum of $ 63.45 this morning on the back for taking some profits. Any movement and close below $ 60 will probably gain the benefits of taking back to $ 55 throughout the area.
Thursday at a meeting of OPEC in Vienna, in all likelihood, not see any change in production quotas in order while the U.S. dollar remains weak expect to see oil prices remain well supported.
[Source]
