After last week's massive sell-off where Brent Oil hit its lowest since November last year (46.66 $). It seems that oil traders found some support and positive momentum, launching oil prices back above the psychological level of 50 USD per barrel.
A recent joint statement between Saudi Arabian Oil Minister Al-Falih and Russian Oil Minister Alexander Novak declared their support for an OPEC-NOPEC deal extension for a further 9 months until Q1 of 2018, giving investors a clear buy signal.
Big hedge funds and other money managers had dumped almost all their longs in a previous sell-off, forcing the intervention of main oil producers to act immediately and support the crusade to keep prices above 50$.
From a technical point of view, we are in a clear impulse wave that could lead prices to a first stage of 54.85$ (currently on Elliott Wave 5).
Fundamentally speaking, we have a couple of very busy weeks with plenty of important meetings that could affect oil prices. To name just few of them we have the visit of President Trump to the Kingdom of Saudi Arabia to sign some deals and to discuss regional geopolitics, including Iran’s threat to the region; Presidential elections in Iran, an OPEC meeting with high expectations… not to mention that a deeper and longer extension of the deal would have an enormous positive impact in oil price heading it to $60 per barrel, a level not seen since 2015.
If we have a look at the daily chart we can see most of the indicators showing a trend reversal, including a green hammer candlestick pattern.
