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OPEC Agreement Fits Into Bullish Technical Set-Up

Published 12/02/2016, 03:50 PM
Updated 07/09/2023, 06:31 AM

Both oil and natural gas have well-demarcated, multi-month accumulation (base) formations, with natural gas (lower chart) having already exploded up through its key resistance zone at 3.10 - 3.36, which projects to 4.20 and 4.80 medium-term targets.

Meanwhile, the oil reaction to the OPEC (and NOPEC) out-put cut agreement merely has thrust price to challenge its multi-month resistance zone at $51 - $52, which, if hurdled and sustained, will project considerably higher, medium-term targets at $60 and at $67 -$69.

From a pattern perspective, natural gas is in a more advanced stage of development than oil at this time.

Crude Oil (top), Natural Gas

Latest comments

Good for oil, but for how long will it continue in this highly unstable run? I hope 2017 be much better.
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