Following OPEC’s agreement to cut supply, demand for the commodity has picked up and with this, up goes the price.
With the technicals showing a nice coiling triangle pattern, the news has seen price rally to resistance where we have seen our first pause since the announcement.
Oil Daily:
On the daily chart, we can see that while it might look like price has broken out of the triangle, the fact that price has been unable to break the horizontal resistance level just 100 pips above is something to be worried about for oil bulls.
Anywhere you see a confluence of support/resistance like this, it is worth taking notice of.
Oil 4 Hour:
Zooming into an intraday chart and price looks even more bearish again, highlighted by a possible head and shoulders setup forming. Now I’m not the biggest fan of these types of subjective setups, but being at a higher time frame resistance level, this one really jumped out at me.
Technical analysis is a self-fulfilling prophecy after all!
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.