Oil prices remain under pressure. After Brent has broken the consolidation range to the downside and fell below 30.00, it got some support ahead of 27.00.
Brent: trading on the OPEC meeting
SELL 62.50; TP1 62.00; TP2 61.30; SL 62.70
BUY 63.75; TP 64.25; SL 63.60
The meeting of oil exporting countries will provide the fundamental reasons for the commodity’s price to make big moves. Technically, Brent made a big advance yesterday rising from the support of the 100- and 50-day MAs in the 61.25 area. The price is currently trading below yesterday’s high of 63.50. If the positive news push oil above this area, it will have the scope to rise to 64.40 (200-day MA). The further resistance will be quite far away – at 66.00 (resistance line connecting 2019 highs), but to get the breakout of the moving average should be confirmed. On the downside, the slide below the 100-period MA on the H4 will open the way down for a decline to 61.95 (200-peiod MA on H4) and 61.25 (daily MAs).
To trade Brent with FBS you need to choose BRN-20G in MT4.
The recovery of WTI last week met resistance in the 54.60 area. The price formed a gap down on the mounting fears about the coronavirus.
WTI oil has reached our previous targets. On the W1, a big bullish candlestick engulfed the previous bearish one.
The pair was falling down amid the waning US dollar. However, the situation changed this month.
Dollar continues to keep firmer on the day, all eyes on the US jobs report later.
Asian equity markets failed to sustain the positive tone from Wall Street where all major indices notched gains as technology sector outperformed for another day.