Oil was in the spotlight for the past few days, mainly because of the hurricane Harvey and a possible disruptions in the Oil production, which should have rise the price of the black gold on the international markets. Indeed, many oil producing facilities were closed but surprisingly (for some people), the price of the Oil did not go up. Those disruptions affected mainly the price of the gasoline but the price of the Crude remained more or less unchanged as this natural disaster did not change the balance between the supply and the demand of the raw commodity.
Despite the production shutdown in the Gulf of Mexico, the price still moves sideways in the range between 46 and 48,8 USD/oz. That movement can be closed inside of the wedge formation (black lines). The wedge itself can be considered bullish as in the longer term it is a correction of the up trend seen from the end of June. With this kind of approach, the bullish breakout was more likely to happen and as we can see, that was the outcome of the Fridays' trading when the price driven by the weaker USD (after NFP) broke the upper line of the wedge.
Apart from the upper line of the wedge, day before - on Thursday, the price additionally broke the 38,2% Fibonacci, which was a strong resistance, being respected from the beginning of the June. Although I am not a big fan of buying Oil, I can read the signals on the chart and to be fair with you, most of the are currently bullish. The positive sentiment should remain as long as we will stay above the 38,2% Fibonacci. The closest resistance is the 50% Fibo, which also was recently respected with a great accuracy.
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Oil broke two important resistances
Published 09/04/2017, 05:06 AM
Oil broke two important resistances
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